Question

A semiprofessional baseball team near your town plays two home games each month at the local baseball park. They split the concessions 50/50 with the city, but keep revenue from ticket sales for themselves. The city charges the team $100 each month for the three-month season. The team pays the players and manager a total of $1,000 a month. The team charges $10 for each ticket, and the average customer spends $7 at the concession stand. Attendance averages 30 people at each home game.In order to break even, how many tickets does the team need to sell for each game?a. 33b. 37c. 41e. 49f. 244

Answer 1

Answer:

c. 41

Explanation:

The first thing we need to do is evaluate the monthly costs of the team:

Monthly Costs: $100 for the park, $1,000 for the salaries.

Total: $1,100

They play 2 local games per month, so they have costs of $550 / local game.

Now, for each ticket they sell, they get $10 for the ticket and $3.50 in concessions. Assuming these are net money from the concessions, not just sales.  So, for each ticket sold, they get $13.50 in revenues.

To cover their $550/game costs they need to sell...

550 / 13.50 = 40.74 tickets... so 41 tickets are needed to cover those monthly costs.