Revenues: Actual Budgeted

Gate Ticket Revenue from visitors $100,000 $120,000

License Revenue from the food court 100,000 100,000

Donations from individuals 50,000 100,000

Grants for the Tiger Conservation Project 180,000 150,000

Grants for the Rhino Conservation Project 100,000 100,000

Grants for the Yellow-billed Cuckoo Conservation Project 120,000 100,000

Subsidies from the Federal and Provincial Governments 200,000 150,000

Total revenue $850,000 $820,000

Expenditures:

Salary of Zoo Director $ 80,000 $ 80,000

Salaries for Assistant Zoo Keepers (2 total) 100,000 100,000

Wages and Salaries for Animal Handlers 100,000 100,000

Security, Office and Support Staff Wages 50,000 50,000

Fringe Benefits costs for employees 130,000 $130,000

Food and Provision costs for animals 360,000 240,000

Overtime Costs 100,000 40,000

Utilities 50,000 30,000

Transportation and supplies for visitors* 100,000 50,000

*Includes masks and hand cleanser

Total expenditures $1,010,000 $ 820,000

Other Operating Data Actual Budgeted

Number of visitors 10,000 15,000

Price per Admission Ticket $10.00 $8.00

Number of donations 1,000 500

Value of each donation $50 $250

Number of animals in the Zoo 120 100

Food Consumed/animal/year $3,000 $2,400

Overtime costs $434/day $120/day

Number of Zoo open days 230 250

Questions your analysis should answer:

Perform the variance analyses for the information you feel is relevant. (10 marks)

What are your findings? Please explain what the variances mean. (6 marks)

Based on your findings, what is the overall situation at the zoo? (8 marks)

If there anything else you suggest Reggie investigate? What other information would he need in order to be able to perform these analyses? (2 marks)

Options:

Reggie has thought of a few options that might help the zoo's situation next year. Please calculate what difference(s) they would make. How would these options affect some of the other zoo activities?

He thinks they could:

1. Increase the ticket price to $15.00 - Reggie believes this might reduce the number of visitors to the zoo by 20%. (3 marks)
2. Reduce the number of animals to 100 by finding other host programs. There would be a one-time cost of transportation of $1,000 each. (3 marks)
3. Fire one of the two assistant zookeepers. (3 marks)

Do you have any other ideas that could improve the situation?

What recommendations do you have for Reggie? (5 marks)