Situated near Richmond, VA, Paradise Park is one of the largest, most-popular amusement parks in the U.S. Because of its central location, it draws visitors from all across the east coast. As a management accountant working for the park, you’re regularly brought in to help make decisions about the future of the park and its offerings.
In this four-week activity, you’ll be given a new scenario each week with three possible recommendations to choose from. You and your team will assess each option, select the best one to implement and provide some rationale as to why you made the decision you did.
Go over the information with your group.
Highlight anything that stands out to you based on your numbers.
You will use this information to help determine your recommendations to the park.
Paradise Park is ready to add a new ride for visitors to enjoy. After several initial conversations, the decision makers have narrowed it down to three options—each of which have their own strengths and weaknesses. Using all the information you have at your disposal, weigh each option and choose the ride you think will be the most beneficial for the park, then explain why your choice is the best one.
Due to the location where the new ride is being built, visitor access to one of the Paradise Park’s two sit-down restaurants will be blocked off for the duration of construction. That’s why the management team has asked you to determine their best option for making up that revenue—and making sure visitors have plenty of locations to purchase food while they’re at Paradise Park. Even before construction on the new ride began, increasing access to food and beverages for guests was already a priority in the park’s three-year plan.
After months of weighing their options, the management team has decided to increase all park employee wages from the currently blended rate of $11.50 per hour to $15 per hour, regardless of their position. It’s a bold move, but they think it’s the right one for the park, especially considering their difficulty keeping Paradise Park fully staffed, the national discussion surrounding a $15 minimum hourly wage and the park’s recent commitment to DEI (Diversity, Equity & Inclusion). Now, they want to know the best way to pay for it and make it happen.
Between building the new ride and increasing employee wages, this year has been a very expensive one for Paradise Park, so looking for new ways to increase profits is a high priority for the next fiscal year. After several discussions with the executive team, three ideas for a new revenue stream have bubbled up to the top. Now it’s time to consider which direction they should go.