Real-Life Math
A rodeo contractor makes money every time a bull performs in the ring. If a bull is famous for exciting performances, you may get extra money for bringing that bull to the rodeo.
"I get paid so much for each time a bull bucks [performs]," says Dave Martin, a rodeo stock contractor. "So you have like 20 bulls and they pay you $50 each time the bulls buck. You take $50 times 20 and then you get a check."
Your monthly costs for keeping 20 bulls include boarding, feed and miscellaneous costs such as veterinary services. You also have to factor in the payments for the initial cost of the bull. "You pay anywhere from $500 to $50,000 for a bull," Martin says. "Most good ones are around $2,000 to $5,000 for a pretty good bull."
You have 20 bulls and it costs you $250 per month for each bull's boarding, feed and other costs.
It's September and you've managed to bring in about $67,500 so far this year. There are 3 more rodeos coming up in the next 6 weeks.
The first rodeo wants you to bring 20 bulls and will pay you $70 each time they perform. It's likely that your bulls will buck twice.
The second rodeo wants you to bring 20 bulls and will pay you $65 per buck. Probably half of your bulls will buck twice. The other half will buck only once.
The third rodeo wants you to bring 15 bulls and will pay you $80 per buck. Your bulls will definitely only buck once.
You'd like to make a profit of $10,000 this year. Which rodeos should you go to in order to make your profit?