Question 4.2 The Blue Jays are evaluating ticket prices for its baseball games. Studies show that Friday and Saturday night games average more than twice the fans of games on other days. The following information pertains to the stadium's normal operations per season: Average fans per game (all games) 2,500 fans Average fans per Friday and Saturday night games 3,500 fans Number of home games per season 30 games Stadium capacity 3,500 seats Variable operating costs per operating hour $2,000 Marketing costs per season for basketball $138,750 Customer-service costs per season for basketball $25,000 The stadium is open for 5 operating hours on each day a game is played. All employees work by the hour except for the administrators. A maximum of one game is played per day and each fan has 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?
Question 4.2
The Blue Jays are evaluating ticket prices for its baseball games. Studies show that Friday and Saturday night games average more than twice the fans of games on other days. The following information pertains to the stadium's normal operations per season:
|
Average fans per game (all games) |
2,500 fans |
|
Average fans per Friday and Saturday night games |
3,500 fans |
|
Number of home games per season |
30 games |
|
Stadium capacity |
3,500 seats |
|
Variable operating costs per operating hour |
$2,000 |
|
Marketing costs per season for basketball |
$138,750 |
|
Customer-service costs per season for basketball |
$25,000 |
The stadium is open for 5 operating hours on each day a game is played. All employees work by the hour except for the administrators. A maximum of one game is played per day and each fan has 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?
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