Question
Valley West Amusement Park is evaluating its ticket prices. It is open during the summer months for 15 weeks. The following information pertains to last
Valley West Amusement Park is evaluating its ticket prices. It is open during the summer months for 15 weeks. The following information pertains to last year's tourist season, and costs are expected to remain the same for this year.
Average tourists per day on Friday thru Tuesday: 2,500 Average tourists per day on Wednesday and Thursday: 1,000 Variable operating costs per day when open: $4,100 Fixed overhead costs per year: $180,000 Marketing costs per year: $62,500 Customer service costs per year: $5,000 Required: What is the unit cost when establishing a long-run price for tour tickets?
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