Reference no: EM132716736
Problem - Analyze Mercy Hospital's staffing 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:
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School Days
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Nonschool Days
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Number of vehicles per day
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3,000
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8,000
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Number of days per year
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165
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200
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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.