Question

Two SSU Athletic programs (football and baseball) are compared at Savannah State University (SSU) in terms of their annual operation costs. The two programs can generate the same revenue (hence the focus on the costs). The football program has fixed costs of $10,000 a year and variable costs of $2.50 per spectactor ticket. The baseball program has a fixed cost of $4,000 per year and variable cost of $4.00 per spectator ticket.

(a) [Points 1.5/10]. Determine mathematically the break-even number of visitors per year for the two rides to have equal annual costs.

(b) [Points 1.5/10]. Develop a graph that illustrates the following (note: put spectators per year on the horizontal axis and costs on the vertical axis).

(b.1) Accurate total cost lines for the two athletic programs (show lines and slopes).

(b.2) The break-even point for the two athletic programs in terms of number of spectators.

(b.3) The range of spectators per year where each alternative is preferred.

Pro

Answer 1

Answer is inserted through picture

(b1) Graph is also shown in the picture above including cost lines and slopes

(b2) The breakeven spectators are 4,000 which is also depicted in the graph. The cost at the point is $20,000

(b3) If the range of spectators are below 4,000, it is preferable to conduct a Base ball match as the total cost line is below indicating total cost of base ball will be lower than football untill it reaches 4,000 spectators.

If the range of spectators are more than 4,000, it is preferable to conduct a football match as the total cost line of football is lower than the baseball line.