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.

2nd attempt

Part 1   (4 points)

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Part 2   (1 point)

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Explanation / Answer

Part 1:

Average revenue for each game = revenue form the ticket sale + revenue form the concession

Average revenue for each game = 100*10 + 100*7*50% = $1350

Total revenue each season = 1350*2*3 = $8100

Total cost each season = 500*3 + 2500*3 = $9000

Profit = 8100-9000 = -$900

Part 2:

Cost per game = total cost / number of games = 9000/6 = $1500

Breakeven number of tickets = 1500/earning per ticket = 1500/13.5

Breakeven number of tickets = 111.11 tickets

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