All the questions are listed in the document below.

MGMT 250 HW 1 Many college football powerhouses have sizeable football stadiums - eight programs have stadiums that house more than 100,000 people. Each of these stadiums was costly to build and to maintain, with average costs of construction in excess of $100 million. One of the cornerstones of covering the costs of such an expense is to sell season tickets. There are many factors that go into convincing fans to purchase season tickets. And while the on-field product is one of the largest drivers of demand for these tickets, it is not the only one. (If you doubt the validity of this statement, just look at ticket sales for any team that has been perennially bad but still has solid season ticket numbers *cough* the Bills *cough*.) Another major factor is the quality of the experience for fans inside the stadium. This covers things like accessibility of bathroom, availability of programs, and the quality and cost of snacks. The schools that operate these stadiums want to make sure fans are having a good experience, but they also want to make sure that the fan experiences are helping offset the cost of the stadiums. Therefore, the schools would like these experiences to generate enough revenue to be profitable. Given this, consider the following menu for Penn State's Beaver Stadium: ITEM Hot Dog Hamburger Cheesesteak Smothered Sausage Nachos Candy Selling Price Variable Cost Percent of Revenue $4.25 $5.50 $6.00 $6.50 $2.00 $2.50 $3.25 $4.00 15% 15% 20% 10% $4.25 $3.75 $2.75 $2.00 25% 15% Pair this with the fixed costs for operating food services over the seven home games in a season: - $150,000 salary expense for managers for 8 food stands (covers all 7 games) 3,000 square feet of stadium space rented out at $1.50/sq.ft. for each game Five workers at each of 8 food stands for 5 hours at PA minimum wage of $7.25/hour, for each game The fixed costs will be allocated to each of the items listed above according to the percent of revenue they represent. For instance, if the per game fixed cost was $100 (Hint: It will be much more than this), then the per game fixed cost for Hot Dogs would be $100*15% = $15. Please prepare a report for me that addresses the following: 1. What is the total fixed cost for the season, and then what is the per game fixed cost? 2. What will be the per game fixed cost for each of the items listed? 3. Where is the per-game breakeven point for each of the items above, in terms of the number of units that must be sold? 4. What is the per-game breakeven point in terms of sales dollars for each item? Given this information, what total sales dollars is needed from all products to breakeven per game (i.e. what is the sum)? 5. If Penn State averages attendance figures of 100,000 people, what is the total dollar amount that the average attendee must spend for the stadium to break even? 6. At least 40,000 drunken students help fill the stadium on game days, and will not purchase anything from the snack bar because they spent all their money on cheap tailgate beer to consume before the game. Given this (and so the average number of customers is now 60,000), what must the average fan spend now for the stadium to breakeven on its food? 7. If the school hopes to bring in profits of $5000 per item per game, how many of each must be sold? Hint, this may require the profit model we developed in the class notes. Instructions: - - Please complete the report in Microsoft Excel. If you do not have a copy of this software, the university provides it to students free of cost. An Excel template has been provided to you to use for completion of the assignment, please use it. Fill your answers in using the highlighted cells. Make sure you title your file as \"SECTION#_ FIRST_LAST_HW1\" when you save it For questions 3-4, I would like you to build your own formula and include it on the first tab for each of the items. Once this is complete, I would like you to repeat the breakeven analysis on the tabs provided using QM's breakeven analysis tool that was shown in class. Check that you get the same answers as the QM tool. For question 7, for hot dogs, calculate the answer from scratch. For the other 5 products, use the solver add-in to answer. This answer should be included on each tab and highlighted. A completed homework will include answers to questions 1-6 on the first tab, a repeat of the analysis in questions 3-4 using QM on each of the tabs provided, and these tabs will have answers to question 7. Homework will be graded as follows: 0 - Incomplete or all incorrect 2.5 - Partially correct 5 - Half correct 7.5 - Mostly correct 10 - All correct *** Submissions that do not follow the instructions above will receive a grade of 0, no exceptions. ***