Florida is the place to be, especially in the winter months! One particular island off the west
Question:
Florida is the place to be, especially in the winter months! One particular island off the west coast has on average 1200 tourists in the vicinity on a typical winter day:
(a) On average, a tourist stays for 10 days? How many tourists arrive each day on average?1,200 tourists a day. Each tourist stays 10 days?
(b) Suppose the average tourist spends $50 per person per day on their first day and $30 per person per day each additional day, at local restaurants. If, due to inflation and other concerns, forecasters worry that the average tourist will only stay for 5 days next winter (but will not alter the way they spend at restaurants), then what percent change in revenue is being forecasted for the local restaurants? (Assume the same average number of tourists present in the vicinity.)?
Managerial accounting
ISBN: 978-0471467854
1st edition
Authors: ramji balakrishnan, k. s i varamakrishnan, Geoffrey b. sprin