EXERCISE 6-17 (30 MINUTES)

2. Managers will hire more support staff, such as security and vending per-

sonnel, for big games that predictably draw more people. These costs

are variable with respect to the number of expected attendees, but are

fixed with respect to the number of people who actually buy tickets.

Most other costs are fixed with respect to both the number of expected

and actual tickets sold—including the costs of the coaching staff, athletic

scholarships, uniforms and equipment, facilities, and so on.