# Xxxxxxxx Xxxxx

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Submitted By keofeditse
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1. Fixed costs per game include \$20,000 food service salaries, \$4,800 to cover costs of 6 concession stands (this includes electricity, hot water, and security), \$1,260 in hourly wages for 36 concessionaires. Total fixed costs per game: 20,000 + 4,800 + 1,260 = \$26,060 2. Soft drink sales need to cover 25% of fixed costs, or \$6,515 Coffee sales need to cover 25% of fixed costs, or \$6,515 Hot dog sales need to cover 20% of fixed costs, or \$5,212 Hamburger sales need to cover 20% of fixed costs, or \$5,212 Miscellaneous snacks need to cover 10% of fixed costs, or \$2,606 3. A soft drink costs \$0.75 and is sold for \$1.50, bringining in \$0.75 of revenue. To reach the soft drink break-even point, \$6,515/\$0.75 = 8,687 must be sold. A cup of coffee brings in \$1.50 in revenue. \$6,515/\$1.50 = 4,343 cups of coffee need to be sold. A hot dog brings in \$1.20 in revenue. \$5,212/\$1.20 = 4,343 hot dogs need to be sold. A hamburger brings in \$1.50 in revenue. \$5,212/\$1.50 = 3,475 hamburgers need to be sold. A miscellaneous snack brings in \$0.60 in revenue. \$2,606/\$0.60 = 4,343 snacks need to be sold. 4. 8,687 soft drinks at \$1.50 each bring in \$13,030.50. 4,343 cups of coffee at \$2.00 each bring in \$8,686.00 4,343 hot dogs at \$2.00 bring in 8,686.00. 3,475 hamburgers at \$2.50 each bring in \$8,687.50 4,343 snacks at \$1.00 each bring in \$4,343.00 Total break-even food service sales: \$43,433.00 2. 5. Spending estimate per attendee for a crowd of 35,000 are \$43,433/35,000 = \$1.24 per attendee. The spending estimate is low enough that purchase habits of multiple food items per attendee make the number realistic. The low spending estimate also renders negligible the fact that some attendees will purchase nothing. 3. 4. Spending estimate per attendee for a crowd of 60,000 are \$43,433/60,000 = \$0.72 per attendee. A venue like Dodger Stadium does not operate all concession stands for smaller

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