Kettle of Fish Hatcheries Provides a Stocked Pond for Fishing

question 3

Multiple Choice

Kettle of Fish Hatcheries provides a stocked pond for fishing enthusiasts. They have fixed costs of $525,000, they charge $50 per person for pond access, and the variable costs of stocking the pond average about $15 per person. How many people need to fish the pond annually to break even?

• A) 45,000
• B) 15,000
• C) 32,000
• D) 10,000

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Definitions:

Materials Price Standard

A predetermined cost per unit of material, used as a benchmark to assess the efficiency and cost-effectiveness of the purchasing and usage of materials in production.

Matrix Approach

A management technique used to handle the complexity of multiple projects or tasks by organizing them into a matrix structure, considering both function and product.

Variance Analysis

The process of analyzing the difference between planned and actual numbers in order to find discrepancies and their causes.

Formula Approach

A method that uses mathematical formulas to solve problems or make decisions.