Question

Two new rides are being compared by a localamusement park in terms of their annual operatingcosts. The two rides would generate the same level ofrevenue (thus the focus on costs).

The Tummy Tuggerhas fixed costs of $10,000 per year and variable costsof $2.50 per visitor. The Head Buzzer has fixed costsof $4000 per year and variable costs of $4 per visitor. (a) Mathematically find the number of visitors per year for the two rides to have equal annual costs.(1) (b) Develop a breakeven graph to show: Accurate total cost lines for the two alternatives (show line, slopes, and equations). The breakeven point for the two rides in terms The ranges of visitors per year where each alternative is preferred.

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