The optimal variable prices for theme park admission in Table 7.5 are based on the assumption that admission fees are the only source of revenue for the park. However, the owner determines that visitors to the theme park spend an average of $12 per person on concessions, generating an average concession margin of $5 per person.

Under the same assumptions about capacity and demand, what is the singleadmission price the theme park should charge to maximize total weekly margin

(admission price plus concession margin)? What are the individual daily prices he should charge under a variable-pricing policy, assuming independent daily demands?

What is the impact on total weekly admissions? What is the impact on total weekly margin from explicitly including concessions in the optimization relative to optimizing prices on the basis of admission revenue alone?