ACCT 3603-Zoo Extravaganza is a not-for-profit organization

2-29 Zoo Extravaganza is a not-for-profit organization. Zoo Extravaganza took over the county zoo, with the provision that the county would provide a subsidy for its operations. The county provides $7,000 per month. The rest of the zoo’s revenues comes from admission charges, which are as follows: $20 for a family admission (the average family has four people), $3 per child in school groups, $5 per child ticket when not in a school group, and $8 per adult ticket.

Each ticket entitles the visitor to ride on the “Train Around the Zoo.” However, only one-third of all visitors actually ride the train.

The zoo expects the following number of visitors per month:

Visitor TypeMonthly Number of Admission TicketsAdult800Child950Schoolchild1,000Families300The zoo has the following monthly expenses in four general areas:

Administration$ 12,000 Zoo staff$ 10,000 Train rides$ 1 per person who rides the train Maintenance$ 1 per visitor Determine the operating budget per month. Show revenues and expenses by line-item, and show the expected profit or loss.