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Part II Here in Niagara Falls, your theme park will be a small one that will cost you about $4 million to build. In order

Part II

Here in Niagara Falls, your theme park will be a small one that will cost you about $4 million to build. In order to begin making a profit, you will need to decide your pricing structure.

Operating Costs: Below make a list of at least ten operating expenses that your park will incur and how much you would GUESS it would cost monthly. (These are expenses like wages, hydro, trash etc.)

Revenue

Now that you have a good idea of some expenses, we need to look at how we can offset those. Assuming that your operating costs are $65,000 per day, let's find a way to cover some of that. Below decide what you would charge 3,000 guests in ticket prices and parking to cover that $65,000. (For this example lets assume that the average number of people per carload is 4).

The following table identifies some cost of items (per item) that you can purchase for your park. Determine what your highest markup could be and then identify your potential profit for each item.

Item Cost Markup Potential Profit (Revenue-Cost)
Hamburger $1.20 50%

1.20 * .5 = .6

$.60 profit

Hotdog $.36
Soda $.43
Ice cream $.56
Cotton candy $.12
Popcorn $.06
Candy $.84
Pretzels $.55
Souvenir $2.50
Shirts $4.00
Cups $3.50
Keychain $1.00

Part III

You have heard about additional ways that Disney generates income. Create twoways that you could do the same in your park. Example: Creating tours where guests can go behind the scenes.

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