Question: please Answer a through d show work thank you! 2. Fran's Fun Park is a children's amusement park located in Tennessee. The park has various

please Answer a through d show work thank you!
please Answer a through d show work thank you! 2. Fran's Fun

2. Fran's Fun Park is a children's amusement park located in Tennessee. The park has various rides and the company must invest heavily to bring new and exciting adventures to its patrons. The company is doing analysis on its park to better understand the finances and whether they should invest additional capital to build a new ride. The following information relates to the park for the period a. What is Fun Park's gross margin (round to 2 decimal points, ex. 0.99)? b. What is Fun Park's total asset turnover (round to 2 decimal points, ex. 0.99)? C. What is Fund Park's return on investment (round to 2 decimal points, ex. 0.99)? d. What is Fun Park's residual income? e. Is Fun Park performing better than Fran's standard? f. What is the anticipated ROI of the new ride (round to 2 decimal points, ex. 0.99) g. What is the residual income of the new ride? h. What is Fun Park's expected total ROI after the purchase of the ride (round to 2 decimal points, ex. 0.99)? I i. Should Fran purchase the new ride? 1 Sales $ 6,000,000.00 Operating expenses $ 3,400,000.00 Net operating incon $ 2,600,000.00 Average operating a $ 7,500,000.00 Fran's minimum req 19% Cost of new ride (op $ 500,000.00 Expected increase ir $ 115,000.00

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!