Problem 1-15 (Algorithmic)

Preliminary plans are underway for construction of a new stadium for a major league baseball team. City officials question the number and profitability of the luxury corporate boxes planned for the upper deck of the stadium. Corporations and selected individuals may purchase a box for $275000. The fixed construction cost for the upper-deck area is estimated to be $4400000, with a variable cost of $150000 for each box constructed.

1. What is the breakeven point for the number of luxury boxes in the new stadium?

   Breakeven point

   fill in the blank 1 luxury boxes

2. Preliminary drawings for the stadium show that space is available for the construction of up to 49 luxury boxes. Promoters indicate that buyers are available and that all 49 could be sold if constructed. What is your recommendation concerning the construction of luxury boxes? The input in the box below will not be graded, but may be reviewed and considered by your instructor. What profit is anticipated?

   Profit

   $fill in the blank 3