The calgary eskimos play in the canadian hockey league

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The Calgary Eskimos play in the Canadian Hockey League. Although the Eskimos will soon be moving to a modern arena, management is studying the possibility of expanding the team's present facility to accommodate increased crowds. A $2.4 million expansion is planned that has a $200,000 residual value and will be depreciated by the straight-line method over four seasons. Information about the expansion follows:

Number of seats

Occupancy rate

Ticket price

Class 1 seats

2,500

80%

$6

Class 2 seats

2,000

60

4

The team will play 50 home games each season. Total added operating costs per game (ushers, cleanup, and depreciation) are expected to average $11,800. All such costs, except depreciation, require cash outlays.

Reference no: EM13572263

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