Case Study Part 5–Monetary Analysis “In the Money”.“Pat we only have an hour to decide” Fred said over the phone. “After paying$15,000 Pocono entry fee, we are $32,500 in the red, so the prize money-even withoutsponsors help we could get out of debt by the end of the season” so if the teamwithdraw now they can recoup some of the losses for the next season, but we wouldlose Goodstone for next year. Fred continued ”by participating the race and finish in thetop five, we have Goodstone is a keeper and can afford to buy another car next seasonfrom Goodstone’s sponsor money, losing the race because of blown engine is going tocost Dynaco Oil contract for next season. No oil company wants a national TV audience
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Debt,Auto racing,Pocono entry fee,cost Dynaco Oil,national TV audience