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 sports team that has been perennially bad but still has solid season ticket numbers, like the Buffalo Bills.) Another major factor is the quality of the experience for fans inside the stadium. This covers things like accessibility of bathrooms, 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, we will consider the concessions offered at Penn States Beaver Stadium. Each group will open and generate their own menu and costs for concessions at Beaver Stadium. The following is a sample of what this might look like, but please note that students should NOT be copying and pasting these numbers to use them. Students should complete their own with randomly generated numbers.

Below is a potential menu for the stadiums concession stand. ITEM Selling Price Variable Cost Percent of Revenue Hot Dog $3.00 $2.00 15% Hamburger $4.00 $2.50 15% French Fries $4.50 $3.25 20% Pizza $5.00 $4.00 5% Nachos $4.25 $2.75 10% Pretzel $2.75 $2.00 15% Soda/Water $3.00 $1.00 25%

And here is a sample of the fixed costs for operating food services over the seven home games in a season: $725,000 total yearly salary expense for managers for 18 food stands (covers all 7 games, and is not a per-game figure) 8,100 total square feet of stadium space rented out at $5.75/sq.ft. for each game (covers the square footage necessary to operate all 18 food stands, but must be rented for each game) Five workers at each of 18 food stands for 8 hours at PA minimum wage of $7.25/hour, for each of the seven home games

Question

Given that there are 7 home games in a given season, please make use of the information provided in your file regarding fixed costs to calculate the total fixed costs for the season. This information is generated on the Manual sheet. To assess the cost of the square footage and the hourly employees, please assume that square footage costs $5.75/sq ft. and that each of the hourly workers at each of the 18 food stands will work 8 hour shifts at $7.25/hr. Also, remember that the space will need to be rented out for all 7 home games (not just one), and the employees will need to be paid for 7 home games-worth of hours.