Real-Life Math -- Solution
In the percentage deal, you would get 15 percent of the ticket sales for all seats sold, and the promoter estimates that 80 percent of the seats will sell.
1,200 x 0.80 = 960 (the number of seats expected to sell)
960 x $42 = $40,320 (total seat sales)
$40,320 x 0.15 = $6,048 (your percentage of seat sales)
Your sponsors will pay you $3,500 if you win or $1,200 if you lose. The promoter will pay you an equal sum. But you expect to lose the fight. You are only willing to count on the lower bonus.
$1,200 x 2 = $2,400
Your total income from the percentage deal, if you lose the fight, would be your seat income plus your bonus income.
$6,048 + $2,400 = $8,448
Or you can opt for the flat fee, or purse as the prize is called in boxing, of $10,000. Unless you know you can win the fight, you would do better to choose the purse.
"I count to 10 every time someone gets knocked out," says Jolene Blackshear, a boxer in Sonoma County, California. "Math is used with figures and percentages for every contract I negotiate, and physics and geometry are also very important aspects of training. Math is an important skill to have for any career."