sponsorships math quiz question 4 of 10: frank houser owns a football team that plays its home games at…

sponsorships math quiz question 4 of 10: frank houser owns a football team that plays its home games at memorial stadium. to increase revenue he is offering a sponsorship to durable goods, a company that makes sports equipment. durable goods wants to provide all of the teams equipment and pay $150,000 for the right to place its logo on the teams uniforms. currently, the team spends $108,000 on equipment annually. how much will frank profit by accepting the offer? a) $108,000 b) $150,000 c) $258,000 d) $1,000,000 submit ©2025 knowledge matters, inc.

sponsorships math quiz question 4 of 10: frank houser owns a football team that plays its home games at memorial stadium. to increase revenue he is offering a sponsorship to durable goods, a company that makes sports equipment. durable goods wants to provide all of the teams equipment and pay $150,000 for the right to place its logo on the teams uniforms. currently, the team spends $108,000 on equipment annually. how much will frank profit by accepting the offer? a) $108,000 b) $150,000 c) $258,000 d) $1,000,000 submit ©2025 knowledge matters, inc.

Answer

Explanation:

Step1: Identify revenue and cost

Revenue from sponsorship is $150,000. Cost of equipment currently is $108,000.

Step2: Calculate profit

Profit = Revenue - Cost. So profit = $150,000 - $108,000.

Step3: Perform subtraction

$150,000 - $108,000 = $42,000. But we need to find the total benefit which is the sum of the sponsorship money and the savings on equipment cost. Total benefit = $150,000+(108,000 - 0) = $258,000 (since Durable Goods will provide equipment so team saves its $108,000 equipment - cost).

Answer:

c) $258,000