A semiprofessional baseball team near your town plays two home games each month

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 $500  each month for the three-month season. The team pays the players and manager a total of $2500 each month. The team charges $10 for each ticket, and the average customer spends $7 at the concession stand. Attendance averages 100 people at each home game.

1st attempt

Part 1   (4 points)

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Part 2   (1 point)

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Explanation / Answer

50% people go for concession to buy a ticket at $7 and $10 otherwise

The city charges $500 each month and team pays to players and manager a total of $2500 per month

Then Revenue per Game =10*50+7*50=850

Total Revenue per season=$850*6=$5100

Total Cost per Month =$3000

TotalCost each season=$3000*3=$9000

Hence Profit for each season=$5100-$9000=-$3900

In order to breakeven we need

10(x/2)+7(x/2)-9000=0

17x=9000*2

17x=18000

x=18000/17*(1/6)=176.5 approx (177 tickets)

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