BAC1624 Assignment

The Guidelines
1. Each group should have 5 to 6 members based on the lecture group.
Please appoint the group leader.
2. The group leader need to email me details of the group member (i.e.
name, student ID and HP no) to my email,
nurbani.hassan@mmu.edu.my
latest by Tuesday, 11th April, 2017.
3. Each assignment need to attach Assignment Cover Sheet, which need
to be signed by group leader and the members. (Please refer
attachment)
4. This assignment contained 3 tasks. Please complete all tasks.
5. Each member need to sign declaration form as attached.
6. The assignment must use Times New Roman font with 12-point size
and 1.5 lines spacing.
7. Please include bibliography/list of references for the assignment. You
may include attachments (if any).
8. There is no minimum page limit, but limited to 50 pages maximum
(excluding attachment).
9. Marks will be given in the following manner for all the 3 tasks:-
a) Neat (5%)
b) Creativity (10%)
c) Content (70%)
d) Conclusion (15%)
10. Penalty will be imposed on late submission.
11. Due date : Friday, 12th May, 2017

(Assignment cover sheet)

BAC 1624 MANAGEMENT ACCOUNTING 1

Trimester 3, 2016/2017
Faculty of Management
 Assignment
Due Date: 12th May 2017
Lecturer Name: Nurbani Md. Hassan

Group Members

Student ID Student Name

1. 1234567891 Salmah Binti Selamat (Group Leader)

2.

3.

4.

5.

Declaration by Group Leader

(This section is to be filled in the students own handwriting)

I hereby declared that all group members names are correctly included in the
above section. I hold a copy of this assignment which I can produce if the original
is lost or damaged. I certify that no part of this assignment has been copied from
any other students work or from any other source except where due
acknowledgement is made in the assignment.

Group Leaders signature : ________________________

Group Leaders name : ________________________

Group Leaders ID No. : _______________________

Date : _______________________

Attachment 2 (Declaration Form)

 Note : Group leader and each member must individually fill up and submit this
form, in the students own handwriting. This form is to be inserted in the
report, right after the assignment cover sheet.

Group Members Name : __________________________________________________

Student ID No. : __________________________________________________

In completing this assignment, I have performed the following tasks (please

list and explain):-

______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
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I hereby declare that I have assessed the final submission and I take full
responsibility should there be any inaccuracies, incompleteness, omissions,
delays or non-submission.

Group members signature : ______________________________

Group members name : ______________________________

ID No : ______________________________

Date : ______________________________

Tasks 1
Get Wet Water Park (GWWP) is a favorite family destination on hot summer
days. From the thrilling Slidewinder to the carefree Lazy River and the
family-oriented Paradise Lagoon, the park offers 50 water-based fun
activities for people of all ages. During the summer, GWWP draws an
average of 10,000 patrons per week-40% of the parks patrons are adults
and the remaining 60% are children. The price of admission to the park is
$15 for adults and $10 for children. Once inside the park, the average adult
spends $8 on food and drinks, and the average child spends $5 on food and
drinks. Management of the park further estimates that it costs $60,000 per
week to operate the park (for staff, water and advertising) if there are 12,500
or fewer patrons, and $65,000 per week if there are more than 12,500
patrons. The park can accommodate a maximum of 17,500 patrons a week.
Finally, management estimate that for every $1.00 patrons spend on food
and drinks, it costs the park $0.50 to buy the food and drinks.

Management is considering whether to offer a special for the coming week.

The park has run two kinds of specials. The first is a kids free week. Under
this option, each paying adult can take a child, free of charge, into the park.
The special will cost nothing to advertise as management knows that word
will get out quickly. Management also expects the following:

Park attendance will increase by 6,000 patrons, to 16,000 patrons for

the coming week.
50 percent, or 8,000, of the patrons will be adults and the remaining
50% will be children
A paying adult will accompany each child

Management calculates that this option will lead to weekly profit of $107,000
an increase of $16,000 over the current weekly profit of $91,000.

The second option is to run additional radio advertising. Under this option,
management would run the usual one-minute ad six times per day on a
local FM station. The extra spots will cost $16,800. Management expects
attendance to increase by 1,000 (to 11,000 patrons) for the week. Similar to
the average week, management expects 40% of these patrons to be adults.
Under this option, management calculates that weekly profit would decrease
from $91,000 to $89,300.
Please answer the following questions (Kindly include calculations where
necessary):

a) What is Get Wet Water Parks decision problem, including its goals?
(5 marks)
b) What are the parks options for the coming week?
(5 marks)
c) What are the costs and benefits of each options? What is the value and
opportunity cost of each option?
(10 marks)
d) What should Get Wet Water Park do this coming week?
(5 marks)

(Total: 25 marks)

Tasks 2
 (25 marks)

Tasks 3
(50 marks)

Total : 100 marks