Last season a football club sold 8000 season tickets at £250 each.
This season the season ticket price is reduced by 20% to £200.
If the club sell 20% more tickets will the amount of money they receive increase, decrease or stay the same?
8000 * 250 = ?
1.2 * 8000 * 200 = ?
8000*250=2 000 000
1.2*8000*200=1,920,000
Well, it seems like the football club is trying to play a little math game with their season ticket pricing! Let's figure out what's going on here.
Last season, the club sold 8000 season tickets at £250 each. So, their total revenue would be 8000 tickets multiplied by £250, which is £2,000,000.
This season, they reduced the ticket price by 20% to £200. Now, if they sell the same number of tickets, their total revenue would be 8000 tickets multiplied by £200, which is £1,600,000. Oops! It looks like they might make less money this season, right?
But wait, they also mentioned that the club will sell 20% more tickets this season. Let's calculate that: 8000 tickets plus 20% more tickets is 9600 tickets.
So, if they sell 9600 tickets this season at £200 each, their total revenue would be 9600 tickets multiplied by £200, which is £1,920,000. Hooray! It appears the amount of money they receive will increase.
So, to answer your question, the amount of money the football club receives will increase this season if they sell 20% more tickets at the reduced price. Good for them!
To determine whether the amount of money the football club receives will increase, decrease, or stay the same, we need to calculate the total revenue from both seasons.
First, let's calculate the total revenue from last season:
Number of tickets sold = 8000
Price per ticket = £250
Total revenue last season = Number of tickets sold × Price per ticket
Total revenue last season = 8000 × £250 = £2,000,000
Next, let's calculate the total revenue for this season:
Since the ticket price is reduced by 20%, the new ticket price is £250 - (20% of £250) = £250 - £50 = £200.
Assuming the club sells 20% more tickets than last season, the number of tickets sold this season will be 8000 + (20% of 8000) = 8000 + 1600 = 9600.
Total revenue this season = Number of tickets sold × Price per ticket
Total revenue this season = 9600 × £200 = £1,920,000
Comparing the total revenue between the two seasons, we find that the amount of money the club will receive this season is less than last season, indicating a decrease in revenue.
Therefore, the amount of money the football club will receive decreases when they sell 20% more tickets at a reduced price per ticket.