1. Prepare a flexible budget, given the following information. The Flint Firebirds (Ontario Hockey League) plan on playing 20 home games. However, the team does well, and also plays 5 playoff games. Average revenue per customer (ticket price plus concessions net) is $12. Average attendance is 2,000 fans/game. Costs are: Arena Labor and concession costs $2,000 / game Arena rental $10,000 / year + $1,000/game. Players and management $400,000 / year. Prepare the flexible budget. Static Budget Flexible budget Number of games 2025 Revenue 480,000 Arena labor and concessions 40,000 Arena rental30,000 Players and mgmt.. 400,000 Total expenses 470,000 Net income (loss) 10,000
1. Prepare a flexible budget, given the following information. The Flint Firebirds (Ontario Hockey League) plan on playing 20 home games. However, the team does well, and also plays 5 playoff games.
Average revenue per customer (ticket price plus concessions net) is $12. Average attendance is 2,000 fans/game.
Costs are:
Arena Labor and concession costs $2,000 / game
Arena rental $10,000 / year + $1,000/game.
Players and management $400,000 / year.
Prepare the flexible budget.
Static Budget Flexible budget
Number of games 2025
Revenue 480,000
Arena labor and concessions 40,000
Arena rental30,000
Players and mgmt.. 400,000
Total expenses 470,000
Net income (loss) 10,000
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