Question

NEWS WIRE MARGINAL REVENUE PRODUCT Alabama's Nick Saban Gets Raise, Contract Extension Nick Saban is staying at the University of Alabama, just like he said all along. Saban reached an agreement Friday that is expected to raise his salary to between $7 million and $7.5 million per year from his current annual compensation of almost $5.4 million and extend his term as head football coach of the Crimson Tide, the Tuscaloosa News has learned. Source: Cecil Hurt and Aaron Suttles, Tuscaloosa News, December 13, 2013 The University of Alabama increased the capacity of its Bryant-Denny Stadium by 10,000 seats when it hired Nick Saban as its football coach. a. If the average price of a season ticket is $1,000, how much additional revenue is the university getting from those added seats? ? b. Does that exceed Coach Saban's pay? Yes

Answer 1

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