Roller Coaster Magic

1
Roller Coaster Magic

• By NaCole Tilson
• Take a closer look into the magic of Roller
  Coaster

2
The History Behind Roller Coaster Magic

• Roller Coaster Magic is a business located inside
  of an amusement park that sells hot dogs, chips,
  and drinks.
• Roller Coaster Magics goal is to form a monthly
  pro-forma cash budget, and also create two
  recommendations about the business.
• These will be of an advantage since it will
  calculate net income and expenses over a certain
  time period.

3
Basic information on the company

• The concession stand will be open between Tuesday
  and Sunday .
• An hourly employee and an assistant manager is
  needed during the open hours of Tuesday through
  Friday.
• Two hourly employees and an assistant manager is
  needed during the open hours of Saturday and
  Sunday.
• 8 customers are expected Tuesday through Friday
  and 16 customers are expected on Saturday and
  Sunday.

4
Assumptions

• Hot dogs sell for 2.50, chips sell for .75, and
  drinks sell for 1.00.

5
Pro forma Results of Net Income
6
Pro forma results
7
Details and Impact on Recommendation 1

• My friend is contemplating on whether or not
  he should sell beer at the concession stand.
• If beer became an option of selling, it would be
  sold to every fourth customer, except on Sundays.
• For every beer sold, there would be one less
  drink.
• Beer would sell for 3 and would cost .66 to
  buy.

8
Details and Impact on Recommendation 2

• My friend is guaranteed to three additional
  customers per hour if he agrees to enter into a
  marketing agreement each year with his former
  friends company.
• This would cost my friend a 1,000 monthly
  service fee if he goes forth with the agreement.
• It would be a good idea to increase the marketing
  budget.

9
Results from recommendation pro forma
10
Conclusion

• This completes the monthly pro-forma cash budget
  for the first year of operations.
• Roller Coaster Magic made a profit of 22,982.91.
  Placing beer in the business will create a loss
  in profit, but advertising will create an
  increase in profit.