Suppose Frontier City Amusement Park bought a ferris wheel for $92,000. 42,512 people paid $2.00 each to ride the ferris wheel the first year. Ignoring the cost of operating how much money did the park lose on the ferris wheel it first year.
92,000 - (42,512 * 2) = ?
To calculate the loss on the ferris wheel in the first year, we need to subtract the total revenue from the initial cost of the ferris wheel.
The total revenue can be calculated by multiplying the number of people who rode the ferris wheel by the price of a ticket. In this case, 42,512 people paid $2.00 each, so the total revenue would be 42,512 * $2.00 = $85,024.
To determine the loss, we subtract the initial cost of the ferris wheel from the total revenue. The initial cost of the ferris wheel was $92,000, and the total revenue was $85,024.
Loss = Initial cost - Total revenue
Loss = $92,000 - $85,024
Loss = $6,976
Therefore, the park lost $6,976 on the ferris wheel in the first year, ignoring the cost of operations.