Show Activity based costing
The Big Sky Planetarium (BSP) is a not-for-profit organization subsidized by the city. The city contributes $7,000 per month. The rest of the planetarium\'s revenues come from admission charges, which are as follows:
$8 per adult ticket
$3 per child ticket in school groups
$20 per family ticket (NOTE: Each family has an average of 4 people).
Each ticket entitles the visitor to attend the IMAX giant screen sense around movie as well as the traditional planetarium show. However, only 1/3 of all visitors see the movie. The planetarium expects the following number of visitors per month.
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Visitor Type
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Monthly # of Tickets
|
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Adult
|
800
|
|
Child
|
950
|
|
School\'s Child
|
1,000
|
|
Families
|
300
|
The planetarium has the following monthly expenses in 4 general areas:
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Administration
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$12,000
|
|
Planetarium Staff
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$10,000
|
|
IMAX movie rentals
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$ 1 per person who sees the movie
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