1. The Star Youth Soccer Club helps to support its 20 boys\' and girls\' teams f
ID: 3051619 • Letter: 1
Question
1. The Star Youth Soccer Club helps to support its 20 boys' and girls' teams financially, primarily through the payment of coaches and buying equipment. The club puts on a tournament each fall to help pay its expenses. The cost of putting on the tournament is $16,000, primarily for development, printing and mailing of the tournament brochures. The tournament entry fee is $800 per team. For every team that enters, the club past referees S150 per game for the three game minimum each team is guaranteed. If the club wants to clear $120,000 from the tournament, how many teams should it invite if all accept the invitation? Historically, 10% of the teams invited decline and do not register or play. How many teams should they invite to plan for those teams that decline the invitation?Explanation / Answer
Entry Fee = $800
Variable Cost = 150 x 3 = 450
Desired Profit = 120,000
Fixed Cost = 16,000
Number of teams required = (120,000+16,000) / (800+450) = 108.8 = 109
Let N be the number of teams invited. Since 10% don't turn up or decline, then N x 0.9 = 109
N = 109 / 0.9= 121.11
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