C)   The UCC football team has added

Miles Morgan

Miles Morgan

Open question

2022-06-11

C)   The UCC football team has added a national power to next year’s schedule. The other team has agreed to play the game for a guaranteed fee of $350,000 plus 30 percent of ticket revenues. Assume that all tickets will be sold for $25. 

a)        How many tickets must be sold in order to recover the $350,000 guarantee? 

b)        If college official wish to net a profit of $500,000 from the game, how many tickets must be sold? 

c)        If a sellout of 50,000 fans is assured, what ticket price would allow the university to earn the desired profit of $500,000?  

Assuming a sellout of 50,000 tickets, what would total profit equal if the tickets are priced at $25? 

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