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 $6 at the concession stand. Attendance averages 100 people at each home game.
The team earns an average of $_________ in revenue for each game and $_____________ of revenue each season. With total costs of $___________ each season, the team finishes the season with $____________ of profit.

Answer 1

Answer: See explanation

Explanation:

Amount charges for each ticket = $10

The average customer spends $6 at the concession stand but the team splits the concessions 50/50 with the city. Therefore, the team gets $6/2 = $3 from concession.

Revenue gotten per customer = $10 + $3 = $13

Average attendance = 100

Total revenue per game = $13 × 100 = $1300

Since there are 2 matches every months and it's a three months season, the number of home matches player will be: = 2 × 3 = 6. Therefore, total revenue will be:

= $1300 × 6

= $7800

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. Therefore, Total cost = (500 × 3) + (2500 × 3)

= 1500 + 7500

= 9000

Profit/Loss = Revenue - Cost

= 7800 - 900

= 1200

Loss of $1200

The team earns an average of ($1300) in revenue for each game and ($7800) of revenue each season. With total costs of ($9000) each season, the team finishes the season with ($1200) as loss.