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 want 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

Answer:

$258,000

Explanation:

Frank houser will benefit in the following ways from Durable goods.

Team equipment worth $108,000 and $150,000 for the right to place the logo on uniforms.

The total benefits will be $108,000 + $150,000

=$258,000