Real-Life Math -- Solution
Winning all the races
Option 1:
$2,500 + 10% purse
(2,500 + (0.1 x 20,000) ) x 15 = $67,500 for the series
Option 2:
$600 + 20% purse
(600 + (0.2 x 20,000) ) x 15 = $69,000 for the series
If you won them all, Option 2 would be the one to take.
Winning 1 out of 7 races
1 / 7 = 0.143
0.143 x 15 = 2.145 races you'll win
Option 1:
2,500 x 15 = 37,500
0.1 x 20,000 x 2.145 = 4,290
37,500 + 4,290 = $41,790 for the series
Option 2:
600 x 15 = 9,000
0.2 x 20,000 x 2.145 = 8,580
9,000 + 8,580 = $17,580 for the series
Obviously, if you only think you can win 1 out of 7 races, Option 1 is the way to go.
But keep an open mind and be flexible.
Race car drivers are constantly making these types of decisions. "It seems like every day a new sponsor opportunity comes along, especially the more you win," says stock car driver Amy Selig.