The Maize Eagles are evaluating ticket prices for its basketball games

ACCOUNTING

Multiple Choice

The Maize Eagles are evaluating ticket prices for its basketball games. Studies show that Friday and Saturday night games average more than twice the fans of games on other days. The following information pertains to the stadium's normal operations per season.



Average fans per game (all games) 2,500 fans

Average fans per Friday and Saturday night games 3,500 fans

Number of home games per season 30 games

Stadium capacity 3,500 seats

Variable operating costs per operating hour $2,000

Marketing costs per season for basketball $138,750

Customer-service costs per season for basketball $25,000



The stadium is open for 5 operating hours on each day a game is played. All employees work by the hour except for the administrators. A maximum of one game is played per day and each fan has only one ticket per game.



The stadium authority wants to charge more for games on Friday and Saturday. What is the minimum price that should be charged for peak attendance nights?

a. $4.40

b. $8.60

c. $6.18

d. $171.45

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