Question

Taylor Stadium is evaluating ticket prices for its baseball games. Studies have shown that Monday and Tuesday ball games average less than half the fans of games on other days. The following information pertains to the stadium's normal operations per season. Average fans per game 5,000 fans Average fans per Monday/Tuesday game 2,000 fans Stadium operating hours per season for baseball 300 hours Stadium capacity 7,000 seats Variable operating costs per hour $2,000 Fixed overhead costs per year for all events $450,000 Marketing costs per season for baseball $212,500 Customer service costs per season for baseball $25,000 The stadium is open for 5 hours on each day a game is played. The stadium is available for some type of use 300 days a year. All employees work by the hour except for the administrators. In addition, only one game is played per day and each fan would have only one ticket per game. Required: What is the unit cost when establishing a long-run price for ball games assuming all tickets are priced the same?

Answer 1

1.The above information taylor stadium the statement is given belw :

variabule operating cost is = 3,00,000 ( 5*30*2000).

cost of marketing per season in the stadium = 212500.

customer services for a season in the stadium = 25000.

TOTAL = (300000+212500+25000) = 5,37,500.

2. In the stadium to palying average fans game = 5000 (50*100).

the mimium long run price is 6.18.  

if the correct alternative is the 'C',

The answer is the $ 6.18.

3. The minum price charged to the varibule cost is 2000.

if the no.of expected on the monday & tuesday is 2000.

mininum price is the = 05.

the stadium alternative is the 'c' with the answer is the = $5.

IF the unot cost of the long run prices games to achived that tickets is the $ 5.