12 May Please read “The Stratton Township Park” on pages 308-311 in
Please read “The Stratton Township Park” on pages 308-311 in your course textbook. Complete questions 1-5 listed below and found on pages 310-311 using the information found in the case study and any of the required reading. Compile your answers in a Word document, and upload it in Blackboard.
Question 1:
Prepare an annual program budget for the Stratton Township Park including golf operations; the pool; concerts; other park activities including tours, nature visitors, and general concessions; and administrative costs. Show the line-item details for each function by natural account and summarize the budget for the park as a whole.
Because of the current fiscal situation, the Stratton Township needs to reduce its operating costs. As usual, the park is on the list of targeted operations. As the finance director for the township, you have been asked to work with the park’s manager to explore possible options.
Question 2:
Based on the information in the budget, find the break-even green fees for the golf course and the break-even admissions charges for the pool. You may assume that the volume of users will not change with increases in pricing. You may also assume that the course will operate for a full 130 days.
a) Do both break even analyses based on the cost of delivering services with and without the allocated management salaries.
b) Do you think the park can realistically charge these fees to park users? What might the consequences of raising fees be economically, politically, and in a public relations sense?
Question 3:
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