Southwestern University (SWU), located 30 miles southwest of the Dallas/Fort Worth metroplex, has witnessed dreadful expandment in its football program. Delay that expandment, fueled by the hiring of unauthenticated coach Bo Pitterno, has conclude past tidings, the need for a bigger stadium, and past complaints environing seating, parking, hanker lines, and acquiescence remain prices.
Southwestern Universitys superintendent, Dr. Marty Starr, was not solely careful environing the absorb of expanding the true stadium versus construction a new stadium, but so environing the assistant activities. He wants to be sconsideration that these several assistance activities produce enrichment liberal to pay for themselves. Consequently, he wants the parking lots, sport programs, and living employment to all be handled as advantage centers. At a late convocation discussing the new stadium, Starr told the stadium overseer, Hank Maddux, to expand a break-even chart and connected axioms for each of the centers.
He instructed Maddux to keep the living employment area break-even tidings fitted for the proximate convocation. After discourse delay other ease overseers and his subordinates, Maddux expanded the consideration under. This consideration shows the expected percent of enrichment by item, the suggested selling prices, and his respect of capricious absorbs.
Selling Capricious Percent
Soft swallow$1.50 $ .75 25%
Coffee 2.00 .50 25%
Hot dogs 2.00 .80 20%
Hamburgers 2.50 1.00 20%
Misc. snacks 1.00 .40 10%
Madduxs unroving absorbs are sensational. He respectd that the prorated interest of the stadium absorb would be: salaries for living employments at $100,000 ($20,000 for each of the five home sports); 2,400 balance feet of stadium quantity at $2 per balance foot per sport; and six populace in each of the six booths for 5 hours at $7 an hour. These unroving absorbs allure be proportionately allocated to each of the products installed on percentages granted in the consideration. For copy, the enrichment from effeminate swallows would be expected to secrete 25% of the aggregate unroving absorb.
Maddux wants to be sconsideration that he has a calculate of things for Superintendent Starr: 1, the aggregate unroving absorb that must be secreteed at each of the sports. 2, the interest of the unroving absorb that must be secreteed at each of the sports/ 3, what his individual sales would be at break-even for each items- that is, what sales of effeminate swallows, coffee, hot dogs, and hamburgers are certain to secrete the interest of the unroving absorb allocated to each of these items. 4, what the dollar sales for each of these would be at these break-even points, and 5, realistic sales respects per attendee for accoutrements of 60,000 and 35,000 (in other vote, he wants to imply how numerous dollars each atendee is spending on living at his incomplete break-even sales at offer and if accoutrements grows to 60,000).
He felt this decisive division of notification would be beneficial to underremain how realistic the assumptions of his copy are, and this notification could be compared delay homogeneous figures from prior seasons.
Prepare the tidings delay the items noted so it is fitted for Dr. Starr at the proximate convocation.