At the local ballpark, the team charges $5.00 for each ticket and expects to make $1,300 in concessions. The team must pay its players $1,800 and pay all other workers $1,500. Each fan gets a free bat that costs the team $3.00 per bat. How many tickets must be sold to break even?
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To determine the number of tickets that must be sold to break even, we need to calculate the total costs and total revenue for the team.
First, let's calculate the total costs:
- Player expenses: $1,800
- Other workers' expenses: $1,500
Total costs = Player expenses + Other workers' expenses
Total costs = $1,800 + $1,500
Total costs = $3,300
Now let's calculate the total revenue:
- Revenue from ticket sales: ?
- Revenue from concessions: $1,300
Total revenue = Revenue from ticket sales + Revenue from concessions
Total revenue = ? + $1,300
Since each fan gets a free bat that costs $3.00, the cost of the bat should be included in the ticket price. Therefore, we need to subtract the cost of the bat from the ticket price to determine the revenue per ticket.
Revenue per ticket = Ticket price - Bat cost
Revenue per ticket = $5.00 - $3.00
Revenue per ticket = $2.00
Now, to calculate the number of tickets needed to break even, we can divide the total costs by the revenue per ticket:
Number of tickets needed = Total costs / Revenue per ticket
Number of tickets needed = $3,300 / $2.00
Now, we can solve for the number of tickets needed to break even:
Number of tickets needed = $1,650
Therefore, the team needs to sell a minimum of 1,650 tickets to break even.