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You have been hired by the Purple Penguins, which is a women's soccer team. The Penguins are popular with area businesses. Prior to COVID, much
You have been hired by the Purple Penguins, which is a women's soccer team. The Penguins are popular with area businesses. Prior to COVID, much of their revenue came from renting luxury suites called "Penalty Boxes." The team estimates the following weekly costs for "Penalty Boxes" rentals: Week Boxes Rented Costs 1 11 $18,500 2 25 $30,500 3 10 $23,000 4 12 $25,000 5 15 $29,000 20 pts Question 11 Due to changes necessitated by the COVID 19 outbreak, the Purple Penguins have made changes to their operations. They need to know how many boxes they will need to rent to make their desired weekly profits from luxury boxes. You are a Maryville Sports Business Management graduate brought in to improve the profitability of the stadium. Assume that the new costs are as follows: variable costs will be $1,000 per luxury box rented and fixed costs will be $20,000. Assume the team wants to make $50,000 per week from rentals. Assume they charge $7,000 to rent each box (and partial rentals are not allowed.) How many boxes must they rent per week to earn their desired profit? Question 12 O pts
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