Lil' Ballers* is a baseball camp operating at Interbay Fields** near Queen Anne, Seattle. They teach children from 6 to 16 years old how to play baseball, the best sport. They divide the year in 2 seasons: SpringSummer and FallWinter. The costs to operate this business are employee (coach) wages ($6,000 per season per coach), storage for all their equipment ($10,000 per season) and the permits and fees to use the fields, which are paid annually ($18,000).

Lil' Ballers charges a $400 tuition per child per season. In SpringSummer, 400 children enroll, In FallWinter, only 80 children (and parents) are interested in baseball and willing to pay the tuition.

To function properly, there must be one coach for every 20 children.

*Not a real business

** A real place, go check it out!

A) Calculate the total annual profits of this business if they operate in both seasons.

B) Calculate the total annual profit of this business if they only operate during SpringSummer season and shut down for FallWinter. Should they shut down in FallWinter?

C) Based on your calculations, do you expect that in future years more baseball academies will open up in Seattle, or will some existing academies exit the market?