5a)Increase in the price of tickets: On comparison with previous year budgeted figures which are already in the red, it is seen that provisions need to be made for the $ 100,000 budget cuts and the overall losses that have been incurred. An increase in ticket prices by $ 15 would mean a fall in the number of visitors, which is assumed to be 20 percent. In this scenario the zoo is expected to make a profit of $ 82,000.
5b) Reduction in the number of animals: The reduction in the number of animals to the previously budgeted figure of 100 would help bring down expenses towards animal food by $ 60,000. However, the zoo would still incur a loss of $ 51,000 during the year.
5c) Reduction in the number of assistants:By reducing the number of assistants from 2 to 1, the expenses associated with the employee like salary, fringe benefits and so on would be eliminated. However, the zoo would still incura loss of $ 24,696.97.
Conclusion:By looking at the three scenarios above, it is seen that option a- “an increase in ticket prices” is the best solution for the problems associated with lower revenues and higher expenses.