Question

Problem 2-29

Zoo Extravaganza is a not-for-profit organization. Zoo Extravaganza took over thecounty zoo, with the provision that the county would provide a subsidy for itsoperations. The county provides $7,000 per month. The rest of the zoo’s revenuescomes from admission charges, which are as follows: $20 for a family admission (theaverage family has four people), $3 per child in school groups, $5 per child ticketwhen not in a school group, and $8 per adult ticket.Each ticket entitles the visitor to ride on the “Train Around the Zoo.” However, only one-thirdof all visitors actually ride the train.The zoo expects the following number of visitors per month:Visitor TypeMonthly Number of Admission TicketsAdult800Child950Schoolchild1,000Families300The zoo has the following monthly expenses in four general areas:Administration $ 12,000Zoo staff$ 10,000Train rides$ 1 per person who rides the trainMaintenance$ 1 per visitor determine the operating budget per month. Show revenues and expenses by line-item, and show the expected profit or loss

Refer to probelm 2-29 in chapter 2. Assuming that the mix of visitors does not change, provide a budget assuming admissions, are 10 percent lower and 10 percent higher than expected?

Answer 1

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