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 $8 at the concession stand. Attendance averages 30 people at each home game.

1st attempt

Part 1   (4 points)

The team earns an average of   $   in revenue for each game and   $   of revenue each season.

With total costs of   $   each season, the team finishes the season with   $   of profit.

Part 2   (1 point)

In order to break even, the team needs to sell      tickets for each game. Round to the nearest whole number.

Answer 1

Answer

Part 1

The team earns an average of $420 in revenue for each game and $2520 of revenue each season.

With total costs of $3300 each season, the team finishes the season with $ -780 of profit.

Part 2  

In order to break even, the team needs to sell 39 tickets for each game.

Reason:

Number of games each month = 2

Number of games in a season of three months = 2*3 = 6

Total cost for the season = City charges + Manager Charges

= 100*3 + 1000*3

= $ 3300

Revenue for the team for each game = 50% of concession + Ticket revenue

= 30*8 * 1/2 + 30*10

= $420

Revenue for the team for the season = 420* 6 =$ 2520

Thus, to Break Even, the team needs to sell = (3300/6) / Revenue per ticket

= 500 / (420/30)

= 500 / 14

= 39