Question

Zoo Extravaganza is a not-for-profit organization. Zoo Extravaganza took over the county zoo, with the provision that the county would provide a subsidy for its operations. The county provides $ 7,000 per month. The rest of the zoo’s revenues comes from admission charges, which are as follows: $ 20 for a family admission (the average family has four people), $ 3 per child in school groups, $ 5 per child ticket when 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- third of all visitors actually ride the train.
The zoo expects the following number of visitors per month:
Monthly Number
Visitor Type of Admission Tickets
Adult ...........800
Child ...........950
Schoolchild .......1,000
Families .........300
The zoo has the following monthly expenses in four general areas:
Administration .........$ 12,000
Zoo staff ............$ 10,000
Train rides ..........$ 1 per person who rides the train
Maintenance .........$ 1 per visitor
Determine the operating budget per month. Show revenues and expenses by line- item, and show the expected profit or loss.



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  • CreatedDecember 19, 2014
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