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I need the 3 highlighted parts of the picture, thanks! Lagoon is an amusement park that offers family-friendly entertainment and attractions. The park boasts more
I need the 3 highlighted parts of the picture, thanks!
Lagoon is an amusement park that offers family-friendly entertainment and attractions. The park boasts more than 25 acres of fun. Lagoons managers have identified the major activities that drive the cost of operating the park. The activity cost pools, the cost driver for each activity, and the cost per unit of the cost driver for each pool are: | |||||
Activity | Description of Activity | Cost Driver | Cost per Unit of Cost Driver | ||
1. Ticket sales and verification | Selling and verifying tickets for entry into the park | Number of tickets sold | $ 3.35 | per ticket sold | |
2. Operating attractions | Loading, monitoring, off-loading patrons on attractions | Number of runs | $ 90.00 | per run | |
3. Litter patrol | Roaming the park and cleaning up waste as necessary | Number of litter patrol hours | $ 20.00 | per hour | |
The following information describes the existing operations: | |||||
a. Admission price for patrons | $ 35.00 | per patron | |||
b. Target operating income % of revenues | 35% | % of revenues | |||
c. The average number of patrons per week: | 55,000 | per week | |||
d. The total number of runs across all attractions per week: | 11,340 | per week | |||
e. Hours of litter patrol per week: | 1,750 | per week | |||
In reponse to competitive pressures, Lagoon is looking to enact the following changes in order to main its current average number of patrons per week: | |||||
a. Reduction in admission price for patrons: | $ (2.00) | per patron | |||
b. Reduction in ticket sales and verification: | $ (0.35) | per ticket sold | |||
c. Reduction in number of attraction running hours: | (1,000) | per week | |||
d. Increased cost for extra refuse containers: | $ 250.00 | per week | |||
e. Decreased litter patrol hours: | -20% | per week | |||
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