Prob 10 The Multnomah Kennel Club is a dog racing club. The Income is mainly from the audience and a certain percentage of the totalizer. The fees for the 90 day racing season are: Pay the cashier and ticket clerk $ 150,000 Commissioner salary 20,000 Maintenance (Repair and others2) 20,000 30,000, necessities Other costs (Depreciation, insurance, etc.2) 100,000 Prize (Total prize to winner) 810,000 The club entered into a contract with the Car Parking Association to park the cars. The car park charges the club $1.80 for each car. A survey shows that on average three people arrive in each car, and there is other means transport except private cars. The Club's sources of income are: Right to grant concessions and license to sell $50,000 Admission (Intentionally set low) $0.80/person A percentage of the totalizer 10% I Requested: a. Assume that each visitor bets $25 a night: 1) How many people must bet, for the Club to return home for a season? 2) What is the profit margin at the break-even point? 3) If the desired profit for one year is $540,000, what should be the number of visitors? b. If free tickets are also provided, so that the number of visitors increases by 10%, what is the new profit rate? It is assumed that the previous number of visitors was 600,000 people. c. If the prize size is increased by 100% in an effort to attract better dogs, thereby increasing the number of visitors, what is the new drop-off point? Use the original data and assume that everyone bets $25 a night