An Amusement Park Finds That When It Charges $15 for an All-Day

question 78

Short Answer

An amusement park finds that when it charges $15 for an all-day pass, attendance is about 2400 per day. When it charges $19 , attendance is about 2200 per day. Is daily revenue higher at a price of $15 or a price of $19?

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Definitions:

Income Statement

A financial statement that provides a summary of a company's revenues, expenses, and profits or losses over a specific period of time.

Revenues

Aggregate income produced from the core activities of a business, mainly through the sale of goods and services.

Expenses

The outflow of money or other resources from a person or company to pay for goods or services.

Income Statement

A financial statement that reports a company's financial performance over a specific accounting period, detailing revenue and expenses to show net income or loss.