Solution-What is the minimum price that should be charged

What is the minimum price that should be charged for peak

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Reference no: EM132735889

The W Sea Eagles are evaluating ticket prices for basketball 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 3 750 fans

Number of home games per season 35 games

Stadium capacity 3 750 seats

Variable operating costs per operating hour $5,000

Marketing costs per season for basketball $231,250

Customer-service costs per season for basketball $75,000

The stadium is open for ?ve 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. The stadium authority wants to charge more for games on Friday and Saturday.

Problem 1: What is the minimum price that should be charged for peak attendance nights?

A. $10.60

B. $13.5

C. $14.19

D. None of the above is correct

Reference no: EM132735889

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What is the minimum price that should be charged for peak

Reference no: EM132735889

Reference no: EM132735889

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