Sensitivity Exercise:

Your customer operates a hotel with a small water park in Fargo. The water park is operated in a separate entity than the hotel, with revenues from hotel

guests and outside users, and the owners reported the results below for the water park in $2023.$ A new competing water park will open in $2024,$ so the

management would like to assess the impact of a $25\%$ decline in customer visits at the $2023$ average spend rate per visit. Alternatively, they feel they may

be able to keep the same number of clients by dropping their average price by $35\%.$ Calculate the impact of each of these changes individually, as well as

the potential gross revenue figure if both of these events should occur at the same time.