Matt’s Pool Hall and Bar
To accept the proposal to host the regional pool tournament, the business must ensure that it makes more than 4832 in profits. This amount will be equivalent to the normal profits that the business earns during weekends having paid the 1500 fee to the regional tournament chair. If the business makes less than 4832 in profits, then it would be advisable to reject the offer and embark on the normal business.
The business may easily achieve that money given that it will be a busy weekend and most likely, the increased pool game activities will lead to increased sales. However, in as much as this may be the case, the variable costs may increase due to the increased activities. The labor cost may be high because the employees will be working overtime. As noted in the case study, the business normally operates between 4 pm and midnight. The concerned weekend, however, would be different because the tournaments would commence at 9 and end at 7 pm. This means that the business must incur additional costs in the form of labor expenses.