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The Montreal Alouettes Football Club is very disappointed with its 2 0 2 2 ticket sales. So far, the number of tickets sold for each

The Montreal Alouettes Football Club is very disappointed with its 2022 ticket sales. So far, the
number of tickets sold for each game has averaged 14,500. The average ticket price for each game
is $80 and the margin on the cost is 350%.
a) If total fixed costs for each game average $1,200,000 how many tickets must they sell to break-
even each game?
b) On average, how much money is the club making (or losing) each game?
To boost attendance (and - hopefully - their bottom line), the Club is contemplating adding a
spectacular half-time show (including marching bands, a star singer, etc.) to their game offering. It
is estimated that such an initiative would result in an increase of 7,000 tickets sold each game. This
spectacular show would cost $300,000.
c) What would be the ROMI on this initiative? |
d) Should the club go ahead with this initiative?
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