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The board of directors of an ice hockey team is preparing financial projections for the next season's operations. The team rents the city's 4000-seat arena for the entire season for $200,000 plus 25% of revenue from ticket sales. An external vendor operates the food & beverage counters at the games and pays the team one-third of the gross revenue.
Problem 1: The team will pay $220,000 for uniforms and equipment, $250,000 for travel costs, $80,000 for the coach's salary and benefits, and $100,000 for housing subsidies for team members not living at home. The average ticket price will be $16, and past experience shows that each fan spends an average of $9 on food and beverages at the games. What must the aggregate attendance for the 30 home games be for the team to just cover all of its costs for the season?
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