10 Question (s points) A semiprofessional baseball team near your town plays two
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Question
10 Question (s points) 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 $200 each month for the three-month season. The team pays the players and manager a total of $1500 each month. The team charges $10 for each ticket, and the average customer spends $8 at the concession stand Attendance averages 50 people at each home game. a See page 246 2nd attempt Part 1 (4 pts) See Hint 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.Explanation / Answer
(A)
Average attendence at one game = 50 people
Ticket price = $10
Total revenue from ticket sale = 50 * 10 = $500
Average spending at concession stand = $8
Total spending at concession stand = $8 * 50 = $400
Team split the concession 50/50 with city
So,
Revenue of team from concession stand = $400/2 = $200
Calculate revenue from single game -
Revenue from single game = Total revenue from tickets + Revenue for team from concession stand
Revenue from single game = $500 + $200 = $700
Season is of three-months. Each month there are two home games.
So, in a season, there are total of six home games.
Calculate the revenue each season -
Revenue = Revenie from single game * 6 = $700 * 6 = $4,200
Thus,
The team earns an average of $700 in revenue from each game and $4,200 of revenue each season.
(B)
Total revenue each season = $4,200
Rent paid to city in entire season = $200 * 3 = $600
Salary expense of entire season = $1,500 * 3 = $4,500
Total cost = $600 + $4,500 = $5,100
Profit = TR - TC = $4,200 - $5,100 = -$600
With total cost of $5,100 each season, the team finishes the season with $-900 of profit.
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