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 $200  each month for the three-month season. The team pays the players and manager a total of $1500 each month. The team charges $10 for each ticket, and the average customer spends $6 at the concession stand. Attendance averages 50 people at each home game.

Part 1:
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.
Part 2:
In order to break even, the team needs to sell ______ tickets for each game. Round to the nearest whole number.

Answer 1

The team earns $500 in revenue for each game and $3000 each season. With total costs of $2600 each season, the team finishes with $400 of profit. In order to break even, the team needs to sell 26 tickets for each game.

Step-by-step explanation:

Part 1:

The team earns an average of $500 in revenue for each game and $3000 of revenue each season.

With total costs of $2600 each season, the team finishes the season with $400 of profit.

Part 2:

In order to break even, the team needs to sell 26 tickets for each game.

Answer 2

The baseball team earns $700 in revenue per game and $4,200 for the season. Their total costs for the season are $5,100, resulting in a loss of $900. To break even, they must sell approximately 85 tickets per game.

Step-by-step explanation:

To calculate the team's revenue and profit, we need to follow a few straightforward steps:

Part 1: Revenue and Profit Calculation

The team earns $500 in revenue for each game ($10 per ticket × 50 people) and $200 from concessions (50 people × $6 average spending at the concession stand × 50% split). Thus, the total revenue per game is $700.

There are two home games each month, so the team earns $1,400 per month from both ticket and concession sales. Over the three-month season, this equates to $4,200 of revenue each season.

Total costs include $200 per month for the use of the park, which totals $600 for the three-month season, and $1500 per month for players' and managers' salaries, which totals $4,500 for the season. Therefore, the team has total costs of $5,100 each season.

To find the profit, we subtract the season's total costs from the season's total revenue: $4,200 - $5,100 = -$900. Therefore, the team finishes the season with $900 of loss, not profit.

Part 2: Break-Even Analysis

To break even, the team must have zero profit/loss. At $10 per ticket, fixed costs of $600 for the city, and $4,500 for salaries, the total fixed costs are $5,100. Without considering concession revenue (since it's shared with the city), the team needs to sell enough tickets to cover $5,100. So, the team needs to sell $5,100/$10 = 510 tickets for the season, or 510 tickets / 6 games = 85 tickets per game when rounded to the nearest whole number.