Wednesday, October 19, 2011

Homecoming


The Oakridge School Homecoming is coming up and with all the things they have going on and all the people that come to do all events I know they generated alot of money. They have homecoming shirts going on sale for $10 dollars and 10 times 3000 is 30,000 dollars going to the school along with the parade. The parade is just a small fee of 2 dollars which will not bring in any money because the parade is only like a max of 100-200 people. The concession stands will bringing major money because when you can buy food and drinks at an event people are most likely going to buy it. The more people there are the lower the prices are going to be. With hot dogs at 2 dollars and hamburgers at 4 dollars and drinks ranging from 3 to 5 dollars people are going to want all three and if 2000 people out of 3000 people buy all 3 then that means $$$$.
I also think there is a deal we you can get all 3 for 5 or 6 dollars.To get food and drinks at an event is a luxury its not something we really have to have. All the money there getting I think money school is making a surplus from all the sales.

5 comments:

Nick izzard said...

The sale of food and drinks at this event can also be thought of economically. These concessions can be thought of fixed costs (i.e. materials used to make the stand, things like coolers). At events such as the homecoming parade and sporting events, the school must take the chance to try to earn revenue. This revenue will go to pay for the fixed costs of opening the concessions. Change in price of the goods served at the concessions are examples of the school attempting to find the equilibrium price of the goods.

Sydney Dunbar said...

During the exciting and busy homecoming season, it is no surprise that consumers become less frugal. While the school may make 30,000 dollars off of homecoming shirts the fixed costs have not be subracted from that total. The profit is sure to be much less than $30,000. A good way for the school to earn extra money would be to not allow food and drinks from outside of the gates into the games or parade. As fans become thirsty or hungry, they will have no option but to purchase good from the concession stand. While the amount of food and drinks that will be sold is unknown, taking a look at sales from previous years could help figure out a godo equilbrium price. While a school may be looking into bringing in money, I beleive that they would rather increase students utility while at least breaking even.

mrkennedy said...

One thing you didn't cover was how the labor is pretty much free! All of the labor are parents who volunteered to help the school. How much money do you think homecoming brought in?

Alex W said...

You also have to add in the cost of supplies or cost of being able to put a parade together to see the school total profit.

morganB6 said...

I agree the school will most likely making some profit and possibly quite a bit of profit, but you forgot to subtract the fixed costs from the total revenue. Yes you will be handed 10$for each shirt sold, but that doesn't neccessarily mean you will profit 10$ for each shirt. You also have to consider the cost of making the shirts. Assuming you based your calculations on the fact you have 3,000 students in your school, you must also remember that not every student will purchase a shirt.
-Morgan C.