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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.
Visitor Type
Monthly # of Tickets
Adult
800
Child
950
School\'s Child
1,000
Families
300
The planetarium has the following monthly expenses in 4 general areas:
Administration
$12,000
Planetarium Staff
$10,000
IMAX movie rentals
$ 1 per person who sees the movie
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