23. The Star Youth Soccer Club helps to support its 20 boy’s and girls’ teams fi
ID: 2738658 • Letter: 2
Question
23. The Star Youth Soccer Club helps to support its 20 boy’s and girls’ teams financially, primarily through the payment of coaches. The club puts on a tournament each fall to help pay its expenses. The cost of putting on the tournament is $8,000 mainly for the development, printing, and mailing of the tournament brochures. The tournament entry fee is $400 per team. For every team that enters, it cost the club about $75 to pay referees for the 3-game minimum each team is guaranteed. If the club needs to clear $60,000 from the tournament, how many teams should it invite? (HINT: formula for the volume for a specific profit = fixed cost + profit amount /price – variable cost)
Explanation / Answer
PRICE = $400
VARIABLE COST = $75
FIXED COST = $8000
DESIRED PROFIT = $60000
NUMBER OF TEAMS TO BE INVITED TO GET THE DESIRED PROFIT
= (FIXED COST + DESIRED PROFIT) / (PRICE - VARIABLE COST)
= ($8000 + $60000) / ($400 - $75)
= $68000 / $325
= 209.23 OR 203 (ROUNDED)
TOTAL 203 TEAMS SHOULD BE INVITED TO ATTTAIN THE DESIRED PROFIT.
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