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Which option brings the most profit? WEEK 4 - A NEW REVENUE STREAM Between building the new ride and increasing employee wages, this year has

Which option brings the most profit?

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WEEK 4 - A NEW REVENUE STREAM Between building the new ride and increasing employee wages, this year has been a very expensive one for Paradise Park, so looking for new ways to increase profits is a high priority for the next fiscal year. After several discussions with the executive team, three ideas for a new revenue stream have bubbled up to the top. Now it's time to consider which direction they should go. One idea is to create VIP passes. With several sizable green These would grant 650 park_ spaces in the park, bringing Now that the new ride is up goers early access to the park in extra entertainment on the and running, there's been talk on weekends. While no food weekends would be another of potentially adding an option options would be available until option. One of the two usable for merchandise. With this the park officially opened two spaces is large enough to install option, guests would be able hours later, VIPs could access a stage and amphitheater-style to purchase a white t-shirt with rides with little to no wait for seating (for $500,000 ), while the park logo for $25 to wear \$150. VIP passes would be the other smaller space would through a special exit that blows bought in advance on a first- be perfect for smaller acts color pigments onto them, come-first-serve basis through with standing room only. The creating a unique t-shirt pattern the website and would require park would pay $10,000 for and adding to the experience. 200 employees to be working for single-performance headliners_ While there would be an initial the extra two hours. Additional (four per weekend) and $5,000 setup fee of $122,000 to pay maintenance and other expenses for each of two smaller acts for the color-blasting tunnel would be estimated at $2 million performing several shows on and $50,000 per year set aside for the year. either Saturday or Sunday at for maintenance, the ongoing the smaller venue (also four per costs of the shirts and pigments weekend). This entertainment would average out to $6.84 pass would be a $15 add on per shirt. The park anticipates to the cost of park admission around 320 guests per day on the weekends and around would purchase souvenir t-shirts 3,000 guests per weekend are on weekdays and around 750 expected to purchase passes. per day on weekends

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