4 5 3 Lalapalooza Extravaganza is a not-for-profit organization. Lalapalooza Extravaganza took over the county Lalapalooza, with the provision that the county would provide for its operations. The county provides $7,000 per month. The rest of the Lalapalooza's revenue comes from admission charges, which are as follows: $20 for a family 6 admission (the average family has four people), $3 per child in school groups, $5 per child ticket when not in a 7 school group and $8 per adult ticket. 8 9 Each ticket entitles the visitor to ride on the "Train Around the Lalapalooza." However, only one-third of the visitor. 10 actually ride the train. 11 12 The Lalapalooza expects the following average number of visitors per month: 13 14 15 16 Adult 17 Child 18 Schoolchild 19 Families 20 Average per Monthly 800 950 1,000 300 21 The Lalapalooza has the following monthly expense in four general areas: 22 23 Lalapalooza & Admin Staff 24 Animal Food & Care 25 Train rides 26 Maintenance 27 $12,000 $10,000 $1 per person who rides the train $1 per visitor 28 1. Determine the operating budget per average month. Show revenues and expenses by line item 29 and show the expected profit or loss. 30 31 2. Create a budget by quarter by taking the average monthly budget and applying the following 32 admission percents by quarter. Remember to allocate admissions and any admission driven 33 expenses. 34 35 36 Admissions by Quarter 37 Quarter 1 30% 2 3 25% 15% 4 30% 38 3. Assume the beginning cash balance at Jan 1 will be $2,000. Will Lalapalooza Extravaganza need to borrow 39 money? If so in what quarter? 40 Lalapalooza Extravaganza Budget Adult Child Schoolchild Families Subtotal County revenue TOTAL Monthly Revenue Expenses Average Average Visitor Train Monthly price Revenue per type visitors riders 800 8 6,400 950 3 2,850 1,000 5 5,000 300 20 6,000 Lalapalooza & Admin Staff 12,000 Animal Food & Care 10,000 Train rides Maintenance TOTAL Monthly Expense 22,002 Excess Revenue over Expense Budget by Quarter Quarter 1 2 3 4 REVENUES Avg. Mo Annual 30% 25% 15% 30% Adult Child Schoolchild Families County Total Revenue EXPENSES Lalapalooza & Admin Staff Animal Food & Care Train rides Maintenance Total Expense Excess Revenue over Expense Cash Balance