Answered

Welcome to Westonci.ca, your ultimate destination for finding answers to a wide range of questions from experts. Discover detailed answers to your questions from a wide network of experts on our comprehensive Q&A platform. Explore comprehensive solutions to your questions from a wide range of professionals on our user-friendly platform.

Parking lot staff budget Adventure Park is a large theme park. Staffing for the theme park involves many different labor classifications, one of which is the parking lot staff. The parking lot staff collects parking fees, provides directions, and operates trams. The staff size is a function of the number of daily vehicles. Adventure Park has determined from historical experience that a staff member is needed for every 200 vehicles. Adventure Park estimates staff for both school days and nonschool days. Nonschool days are higher attendance days than school days. The number of expected vehicles for each day is as follows:

School Days Nonschool Days
Number of vehicles per day 3,000 8,000
Number of days per year 165 200

Parking fees are $10 per vehicle. Each parking lot employee is paid $110 per day.

Required:
a. Determine the annual parking lot staff budget for school days, nonschool days, and total.
b. Determine the parking revenue for school days, nonschool days, and total.
c. If depreciation expense and other expenses for running the parking lot were estimated to be $2 million per year, determine the parking lot's budgeted profit.

Sagot :

Answer: See explanation

Explanation:

a. Determine the annual parking lot staff budget for school days, nonschool days, and total.

For school days:

Number of staff required per day = 3000/20 = 15

Number of staff days per year = 15 × 165 = 2475

Annual parking lot staff budget = 2475 × $110 = $272250

For non school days:

Number of staff required per day = 8000/20 = 40

Number of staff days per year = 40 × 200 = 8000

Annual parking lot staff budget = 800 × $110 = $880,000

Total annual parking lot staff budget = $272250 + $880000 = $1152250

b. Determine the parking revenue for school days, nonschool days, and total.

For school days:

Total number of vehicles per year = 3000 × 165 = 495000

Parking revenue = 495000 × $10 = $4950000

For non school days:

Total number of vehicles per year = 8000 × 200 = 1600000

Parking revenue = 1600000 × $10 = $16000000

Total parking revenue = $4950000 + $16000000 = $20950000

c. If depreciation expense and other expenses for running the parking lot were estimated to be $2 million per year, determine the parking lot's budgeted profit.

Parking revenue = $20,950,000

Less: Parking lot staff payroll = $1152250

Less: Depreciation and other expenses = $2000000

Budgeted profit = $177977500

Thanks for using our service. We're always here to provide accurate and up-to-date answers to all your queries. Thank you for your visit. We're dedicated to helping you find the information you need, whenever you need it. Your questions are important to us at Westonci.ca. Visit again for expert answers and reliable information.