Question

A semiprofessional baseball team near your town plays two home games each month at the local baseball park. The team splits the concessions 50/50 with the city but keeps all the revenue from ticket sales. The city charges the team $100  each month for the three-month season. The team pays the players and manager a total of $1000 each month. The team charges $10 for each ticket, and the average customer spends $6 at the concession stand. Attendance averages 30 people at each home game.

The team earns an average of (1)$___ in total revenue (tickets plus share of concessions) for each game and (2) $___ of revenue each season.

With total costs of (3)$____ each season, the team finishes the season with (4)$____ of profit.

Answer 1

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Solution:

Team earns $ 10 for each ticket and 30

people attend a game and spend $6 on concession stand but team receives only 50% of $ 6= $3 out of this so, Per customer revenue of team= $10+ $3=$13

Total revenue per game 13 * 30= $390 For a season of 6 games, total revenue= 390*6=$2340

Total cost = (3*$100) + (3*$1000)

= $300 + $3000 = $3300

Profit = revenue- cost

$2340 - 3300= -960

$ It means loss of $960