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.
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Choices to make for Southwestern University Stadium
Figure 1. Decisions To Make:
- Buy a new stadium.
- Renovate the Existing Stadium.
- Keep the Stadium as is.
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.
Percent Revenue and Fixed Cost
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Anticipated Attendance/Ticket Sales
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.
