Bramell Park is an amusement park with an entrance fee that allows unlimited rides. Last year, the company sold 96,000 one-day admission tickets with anaverage price of $133 and 34,000 three-day admission tickets with an average price of $296. The park management expects one-day admission ticket volumeto decrease by 12 percent and three-day admission ticket volume to increase by 4 percent.At the same time, increased competition is expected to result in one-day ticket prices that are 15 percent lower than the current level and three-day ticketprices that are 10 percent lower than the current price.Required:Estimate admission revenues for Bramell Park for the coming year for one day and three day tickets

To estimate the admission revenues for Bramell Park for the coming year, we will calculate the…

Answered: Bramell Park is an amusement park with…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Bramell Park is an amusement park with an entrance fee that allows unlimited rides. Last year, the company sold 99,000 one-day admission tickets with an average price of $136 and 35,500 three-day admission tickets with an average price of $302. The park management expects one-day admission ticket volume to decrease by 12 percent and three-day admission ticket volume to increase by 4 percent. At the same time, increased competition is expected to result in one-day ticket prices that are 15 percent lower than the current level and three-day ticket prices that are 10 percent lower than the current price. Required: Estimate admission revenues for Bramell Park for the coming year. Note: Do not round your intermediate calculations. Products One-day tickets Three-day tickets Revenues
Sillytime Park competes with Summer World by providing a variety of rides. Sillytime Park sells tickets at $60 per person as a one-day entrance fee. Variable costs are $24 per person, and fixed costs are $226,800 per month. The breakeven number of tickets is 6,300. If Sillytime Park expects to sell 8,050 tickets, compute the degree of operating leverage (round to two decimal places). Estimate the operating income if sales increase by 20%. C Begin by selecting the formula labels and then entering the amounts to compute the degree of operating leverage for Sillytime Park. (Round the degree of operating leverage to two decimal places, X.XX.) Degree of operating leverage
Stubs-R-Us is a local event ticket broker. Last year, the company sold 760,000 tickets with an average commission of $10. Because of the general economic climate, Stubs expects ticket volume to decline by 20 percent. In addition, employees at a local insurance company headquarters accounted for 5 percent of Stubs’ volume. The headquarters relocated to another state and all the employees closed their accounts. Offsetting these factors is the observation that the average commission per sale is likely to increase by 15 percent because the average ticket prices are expected to be larger in the coming year. Required: Estimate commission revenues for Stubs-R-Us for the coming year.
Estimate commission revenues for Stubs-R-Us for the coming year.
A sportswear retaller reported net sales of $300,000 in year 1. Its cost of sales was $180,000 for the same year. For years 2 and 3, the retaller plans to increase net sales by 10 percent in year 2 and 15 percent in year 3. It also plans to negotiate a better contract with the sportswear manufacturer so that the cost of sportswear that is purchased and sold would Increase by a maximum of 8 percent in year 2 and by 12 percent in year 3. (Do not round intermediate calculations. Round percentage answer to 1 decimal place (I.e., 0.124 should be entered as 12.4).) Required: 1. Compute the gross profit for year 1. Answer is complete and correct. $ 120,000 Gross profit 2. Compute the percentage changes in gross profit for years 2 and 3. Answer is complete but not entirely correct. Percent change 13 % 19.5% Year 2 Year 3
They collect rent revenue of $20 sf/yr for WalMart ( 100,000 sf) since it is an anchor store. They charge BestBuy $25sf/yr( 70,000 sf) plus 10% of sales that exceeds $200 sf/yr. Sales in the first year of BestBuy is expected to be $160 sq/ft and growing at 6% per year. The boutique store( 30,000 sf) is charged $23 sf/yr plus 10% for sales that exceeds $100 sf/yr. Sales for the boutique store in year 1 is $105 sf/yr and is expected to grow at 4% per year. Calculate the gross potential rental revenue for these three tenants. Thank you.
Gina Davis estimates that if Happy Times Hotel decreases the nightly rates to $70, weeknight occupancy will increase to 80%. She also estimates that if the hotel increases the nightly rate on weekend nights to $100, occupancy on those nights will remain at 90%. Would this be a good move for Happy Times Hotel? Show your calculations.
Raveen Products sells camping equipment. One of the company’s products, a camp lantern, sells for $90 per unit. Variable expenses are $63 per lantern, and fixed expenses associated with the lantern total $135,000 per month. At present, the company is selling 8,000 lanterns per month. The sales manager is convinced that a 10% reduction in the selling price will result in a 25% increase in the number of lanterns sold each month. Calculate Profit, if proposed changes by sales manager being implemented
A drive in movie theater has been selling popcorn, and the small concession stand has normally reported a monthly profit of $18,000 on sales of $48,000, fixed costs are currently about $18,000, and variable costs of $0.80 per popcorn order. Next year, the company plans to start selling pretzels for $4 each. Pretzels will have a variable cost of $0.92 and new equipment and personnel to produce nachos will increase monthly fixed costs by $7,288.80. Initial sales of pretzels should total 3,000 units per month. Determine the monthly break-even sales during the first month of pretzel sales, assuming a constant sales mix of 1 unit of pretzels and 3 units of popcorn.
You have a tea stall in operation at Ramna park since 2015. Information of your business in 2018 are as follows: Selling price was BDT 10 per cup Average Sales volume was 35 cup per day Annual sales growth was 12% Price increases by 20% every year Monthly average selling and administration cost of the stall was: Police Commission = BDT 500/month Rent = BDT 1,000/month Utility = BDT 200/month Depreciation = BDT 60/month During a normal situation, the following growth has been observed: Raw material cost increases by 10% every year Labor cost increases by 8% every year MOH cost increases by 12% every year Selling and administration cost increases by 4% every year Make a Master Budget (Sales/Production/RM/Labor/MOH/Selling & Administrative/Cash budget) for the year 2019 (Pre CORONA virus year ) and another Master Budget for the year 2020 (CORONA virus year). You need to calculate your own production cost (raw…
Bodow is an entertainment complex located in Trinidad & Tobago. It offers various activitiessuch as music, rides, slides, and souvenir shopping, and customers pay a fixed fee to enter.The complex has been in operation for the past seven years and remains open throughout theyear. However, weather-related issues often lead to a significant decrease in customerattendance, usually by 50%, on approximately 30 days each year.Bodow has experienced substantial success, with customer numbers increasing byapproximately 15% annually. Sales at Bodow are categorized as cash sales and credit cardsales. All ticket sales are recorded on a computer, including the amount of each sale and thenumber of tickets issued. This information is electronically transferred to the accounts office.Cash collected from each ticket office is counted by two accounts clerks and two securityguards before being banked daily. The total cash from each ticket office is reconciled with thesales information transferred from…
Bodow is an entertainment complex located in Trinidad & Tobago. It offers various activitiessuch as music, rides, slides, and souvenir shopping, and customers pay a fixed fee to enter.The complex has been in operation for the past seven years and remains open throughout theyear. However, weather-related issues often lead to a significant decrease in customerattendance, usually by 50%, on approximately 30 days each year.Bodow has experienced substantial success, with customer numbers increasing byapproximately 15% annually. Sales at Bodow are categorized as cash sales and credit cardsales. All ticket sales are recorded on a computer, including the amount of each sale and thenumber of tickets issued. This information is electronically transferred to the accounts office.Cash collected from each ticket office is counted by two accounts clerks and two securityguards before being banked daily. The total cash from each ticket office is reconciled with thesales information transferred from…

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