You have been hired to evaluate two prospective markets for a new minor league baseball team in Texas. Lubbock and Amarillo are both in West Texas. The table below shares some general information about the cities.

	Lubbock	Amarillo
Population	290,805	262,056
Companies with 500+ employees	18	22
Cumulative payroll of large companies	Not available	Not available
Median household income	$44,139	$47,053
Universities with athletic teams	Texas Tech Football • Stadium capacity:60,454 • Home games: 6 • Suites: 76 Baseball • Stadium capacity:4,368 • Home games: 28 • Suites: 0 Basketball • Arena capacity: 15,000 • Home games: 17 • Suites: 24	West Texas A&M Football • Stadium capacity: 20,000 • Home games: 5 • Suites: 0 Baseball • Stadium capacity: 6,100 • Home games: 28 • Suites: 0 Basketball • Arena capacity: 4,700 • Home games: 12 • Suites 0
	Lubbock Christian University Baseball • Stadium capacity:6,362 • Home games: 28 • Suites: 0 Basketball • Arena capacity: 1,950 • Home games: 12 • Suites: 0
Semi-professional teams	West Texas Roller Derby • Capacity: 2,000 • Home games: 3 • Suites: 0	Amarillo Bulls • Capacity: 2,848 • Home games: 60 • Suites: 0 Amarillo Venom • Capacity: 2,848 • Home games: 7 • Suites: 0

a. Calculate the per capita sales required to sell out in each city if the baseball team builds a stadium with 9,000 people capacity and plays 38 home games a year.

b. Calculate the firms per suite ration in each city if the new stadium includes 5 luxury suites. 

c. Which city would you recommend as the home for the minor league baseball team? Explain your answer in detail. Your answer must include relevant ratios, but you can make an argument for why the ratios need to be changed to include/exclude certain teams. You can also make the case for other factors you think are relevant. 

Answer rating: 100% (QA)

Quiz a If the baseball team builds a stadium with 9000 people capacity and plays 38 home games a yea... View the full answer