ACCT Disc 7
The owner of a local bowling alley has determined that attendance on weekends and evenings is strong, but during the day, Monday through Friday, attendance is poor. The owner is considering whether contracts with local grade schools can boost attendance for a set charge per student. The bowling alley can be used for educational purposes suitable to the needs of each school. The owner wants your help to prepare a CVP analysis listing the costs and sales projections for the proposal. The owner must propose to the administrators of the schools a fee per student. At a minimum, the fee per child should be such as to the allow the bowling alley to break even.
In your initial post, brainstorm several questions that would enable you to complete a reliable CVP analysis for this situation. Then, list at least five questions that would need to be answered by the owner of the bowling alley and at least five questions that school administrators would need to answer.
