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Tanner amusement park provides rides and outdoor activities for children and teens. In a typical summer season, the number of adult and children's tickets sold
Tanner amusement park provides rides and outdoor activities for children and teens. In a typical summer season, the number of adult and children's tickets sold are 20,000 and 10,000 respectively. Adult ticket prices are $18 and children's price is $10. Each visitor (child or adult) spends average of $10 on food, beverage and souvenir. Variable costs per person are $4 and fixed costs amount to $150,000. Develop a mathematical model and determine their profitability. Use what-if-analysis data table and determine how the business' profit will change if expected adults' tickets sold varies between 15000 and 25000 in increments of 1000, and unit costs change between $2 and $6 in increments of $1.00. (10 points)
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