question archive Tanner Park is a small amusement park that provides a variety of rides and outdoor activities for children and teens
Tanner Park is a small amusement park that provides a variety of rides and outdoor activities for children and teens
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Tanner Park is a small amusement park that provides a variety of 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 the children's price is $10. Revenue from the food and beverage concession is estimated to be $60,000 and sourvenir revenie is expected to be $25,000 Variable costs per person are $3 and fixed costs are $150,000. Determine the profitability of this business.
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Answer:
| Nos | Rate | Amount | |
| Adult | 20000 | $ 18 | $ 360,000 |
| Children | 10000 | $ 10 | $ 100,000 |
| Food & Beverage | $ 60,000 | ||
| Souvnier revenue | $ 25,000 | ||
| Variable Cost | 30000 | $ 3 | $ (90,000) |
| Fixed Cost | $ (150,000) | ||
| Profit | $ 305,000 |
