Mr Zoo is planning to set up a mini Zoo in Howick.   The following relates to different pricing plans of visiting the zoo and costs of running the zoo. Pricing Plan 1 - $30 per person (a special pack will be included) Pricing Plan 2 - $25 per visitor (the special pack not to be included) Variable Costs per visitor   Special Pack - $8 Zoo Consumables - $7 Zoo Expenses - $2   Total Fixed Costs - $200,000. Write a

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Chapter10: Short-term Decision Making
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Mr Zoo is planning to set up a mini Zoo in Howick.

 

The following relates to different pricing plans of visiting the zoo and costs of running the zoo.

Pricing Plan 1 - $30 per person (a special pack will be included)

Pricing Plan 2 - $25 per visitor (the special pack not to be included)

Variable Costs per visitor

 

Special Pack - $8

Zoo Consumables - $7

Zoo Expenses - $2

 

Total Fixed Costs - $200,000.

  • Write a report to Mr Zoo for recommending which pricing plan should be adopted. Your recommendation should include at least ONE piece of financial and ONE piece of non-financial information.
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