The Parent Group of the Local University Football Team Organizes

question 58

Essay

The parent group of the local university football team organizes an end of training camp bar-b-que dinner each year.The 110 player roster and 12 coaches eat for free,and ticket sales are used along with a fixed amount subsidy to fund the event.Last season 250 meals were produced and served.The following financial statement was prepared by one of the team parents:
Revenue:

* The deficit was covered by a one-time donation from a parent whose son graduated and is consequently no longer on this years team.
Required:
Calculate the price per ticket that must be charged to breakeven based on the following assumptions:
- the number of players and coaches meals remain the same,but the number of meals sold increases by 20
-the fixed costs are the same as last year
-the variable costs per unit are the same as last year
-the subsidy will remain at $3,000

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Definitions:

Indifference Map

A graphical representation that shows different bundles of goods between which a consumer is indifferent, reflecting their preferences and consumption choices.

Consumer Utility

The satisfaction or benefit a consumer receives from consuming a good or service.

Combination

The selection of items or data points from a larger set without regard to the order in which they are selected.

Utility

Refers to the total satisfaction received from consuming a good or service.