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The Southwestern University Stadium: Assessment Presentation

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Stadium Analysis

As discussed, the following tables show a detailed assessment of the cost structure and revenue stream for selling condiments and drinks at the SWU stadium currently with the historical data as presented.

Stadium Analysis

Choices to make for Southwestern University Stadium

Figure 1. Decisions To Make:

  1. Buy a new stadium.
  2. Renovate the Existing Stadium.
  3. Keep the Stadium as is.

Choices to make for Southwestern University Stadium

Fixed Cost Analysis

Table 1:

  • Food Service Salaries $100,000 (5*$20,000).
  • Stadium Space $11,990 ($2,400*$2*5 games).
  • Booth Salaries $6,300 (6 per/booth)*(6 booths)*($7/hr)*(5hrs)(5 games).
  • Total Fixed Costs: $118,290.

Fixed Cost Analysis

Percent Revenue and Fixed Cost

Condiment/ DrinkPercent Revenue (%Rev)$ Fixed Cost* %Revenue
Soft Drink25%$29,572.50
Coffee25%$29,572.50
Hot Dogs20%$23,658
Hamburgers20%$23,658
Misc. Snacks10%$11,289

Percent Revenue and Fixed Cost

Anticipated Attendance/Ticket Sales

Before Bo PitternoAfter Bo Pitterno (10,000 more)
25,000-29,00035,000-39,000
125,000-145,000175,000-195,000

Anticipated Attendance/Ticket Sales

Breakeven Analysis

Condiment/ DrinkSell PriceVar. CostUnits to Breakeven$ Sales at Zero Profit$ Sales at 60,000
Soft Drink$1.50$0.75157,720$236,580$265,775
Coffee$2.00$0.5078,860$157,720$171,715
Hot Dogs$2.00$0.8098,575$197,150$235,850
Hamburgers$2.50$1.0078,860$197,150$235,850
Misc. Snacks$1.00$0.40197,150$197,150$235,850

Breakeven Analysis

Conclusions Reached

A preliminary assessment indicates that if the stadium remains as is, the profit level is reasonable to maintain even at 35,000 attendees. To decide upon expanding the stadium requires further construction assessment and cost analysis as several contractors would need to provide estimates. The revenue level at 60,000 shows that the stadium intake would still be profitable but minimally.

Conclusions Reached

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IvyPanda. (2022, September 30). The Southwestern University Stadium: Assessment. https://ivypanda.com/essays/the-southwestern-university-stadium-assessment/

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"The Southwestern University Stadium: Assessment." IvyPanda, 30 Sept. 2022, ivypanda.com/essays/the-southwestern-university-stadium-assessment/.

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IvyPanda. (2022) 'The Southwestern University Stadium: Assessment'. 30 September.

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IvyPanda. 2022. "The Southwestern University Stadium: Assessment." September 30, 2022. https://ivypanda.com/essays/the-southwestern-university-stadium-assessment/.

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