Analyzing budget data and resource requirements Pices Aquarium is a not-for-profit or- ganization devoted to the study of aquatic life and to public education. The aquarium has both indoor aqd outdoor exhibits and has been growing significantly over the last several years. The 1992 revenue and expenditure budgets for Pices Aquarium are present below.

In the last 5 years the aquarium has experienced a steady 10 percent growth in visitors each year. In 1992, 500,000 people will visit the aquarium and pay the $2.50 admission fee. Although funds for operating the aquarium are available, it is difficult to raise enough money to maintain properly the displays and other facilities. Saltwater displays are particularly vulnerable to deteri- oration. A problem facing the aquarium in 1993 is that the main saltwater display tank needs major repair and maintenance. Management has been postponing the project for several years because of funding problems. But recent evidence indicates that the project must be done in 1993 or the entire display will have to be closed. The projected cost for the entire project is $410,000.
The only special funding for the project is from the conservation groups that currently provide some support for the aquarium. They have promised to increase their 1993 contributions by $150,000. The rest of the funds will have to be raised by the aquarium through higher admission fees. The management of the aquarium is reluctant to raise the admission fee, because it wants as many people as possible to have the opportunity to visit. However, there is no other way of raising the money to protect the facilities.
Management estimates that the expected 10 percent increase in visitors in 1993 will be reduced by 1 percent for every $.10 increase in the admission price. (A price increase from the current $2.50 to $2.60 would result in a 9 percent increase in visitors in 1993 rather than 10 percent) Concession sales are expected to increase by 8 percent in 1993. A special campaign by a local radio station is expected to increase public contributions by 25 percent next year. No change is expected in federal government support.
In addition to the major repair of the main saltwater tank, most other costs are expected to increase also. Administrative and professional salaries are scheduled to increase 5 percent, and a labor agreement with other employees provides for an 8 percent wage increase in 1993. There are no plans for any changes in the number of persons employed at the aquarium. The cost of animal food and supplies has been rising at the rate of 12 percent and is expected to continue at the same rate for the next year.
The cost of concession items will remain at the same level per dollar of concession revenue. A recent utility rate change will increase 1993 utility costs, by 18 percent. Normal maintenance costs will be about 5 percent higher in 1993 and special repairs and maintenance on other facilities will remain the same for the next year. Management has decided to reduce the equipment purchases budget by 50 percent to help pay for the cost of the main-saltwater tank.

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PICES AQUARIUM Revenue Budget 1992 Admission fees.. Sales of food, souvenirs, and other concession items Federal government grants Public contributions Contribution from conservation groups. Total budgeted revenues Expenditure Budget PICES AQUARIUM 1992 Administrative and professional salaries $1,250,000 600,000 150,000 100,000 300,000 $2,400,000 $ 340,000 Employee wages.... 600,000 Animal food and supplies 800,000 Concession items 240,000 Utilities 160,000 Normal maintenance 120,000 Equipment purchases.. 80,000 Special repairs and maintenance 60,000 Total expenditures $2,400,000