The manager of a tourist attraction is considering whether to open on 1 January, a day when the attraction has, in previous years, been closed. The attraction has a daily capacity of 1000 visitors. If the attraction opens for business on that day it will incur additional specific fixed costs of £30,000. 

The contribution from the sale of tickets would be £25 per visitor. The number of visitors is uncertain but based on past experience it is expected to be as follows:

Required

1. Calculate whether it is worthwhile opening the tourist attraction on 1 January. You should use expected value as the basis of your analysis. 

2. a. Prepare a two-way data table to show the contribution to general fixed overheads for each of the nine possible outcomes. 

b. Calculate the probability of making a positive contribution to general fixed overheads by opening on 1 January.

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Probability 800 visitors 50% 900 visitors 30% 1000 visitors 20% It is expected that visitors will also purchase souvenirs and refreshments. The contribution which would be made from these sales has been estimated as follows: Probability £8 per visitor £10 per visitor £12 per visitor 35% 40% 25%