Question

Frank houser owns a football team that plays its home games at memorial stadium. to increase revenue he is offering a sponsorship to durable goods, a company that makes sports equipment. durable goods wants to provide all of the team's equipment and pay $150,000 for the right to place its logo on the team's uniforms. currently, the team spends $108,000 on equipment annually. how much will frank profit by accepting the offer?

Answer 1

The profit earned by Frank houser through accepting the sponsorship of another company is the difference between the amount that the company is to provide and the amount that is to be spent for the equipment.
                         Profit = $150,00 - $108,000
                           Profit = 42,000

Answer 2

$150,000 + $108,000 = $258,000