Good morning Year 5!
Today we continue with our project, creating a new animal-themed tourist attraction for Stratford-upon-Avon.
Your work today focuses on the budget and costs of the project as well as a profit prediction. Read the information below carefully to help you calculate the costs involved. Take it one step at a time, and take your time to make sure you do it properly without missing out anything.
Building Costs
This depends on the size of your attraction. On average, it costs £3000 per square metre. So, if your attraction takes up 5 square metres, it would be far too small, but it would cost £3000 x 5 = £15,000 to build. If it takes up 20 square metres, it would cost you £3000 x 20 = £60,000 to build. Your attraction though will most likely take up double or even triple that space! First, work out how many square metres your attraction will take up. Use your map from before, or use google maps and the scale on it to check the area you have selected to build it on. Then, multiply the amount of area by £3000 to calculate how much it will cost to build it.
Opening Costs
Are you going to open 7 days a week? Or fewer days per week? To keep your attraction open, animals fed and cared for, power and water supplied each day etc, costs money. See below to see the cost per day for one enclosure:
Animal care= £23 per enclosure
Power= £7 per enclosure
Water= £11 per enclosure
Remember, these are costs for one enclosure per day. So, if you have one area for pigeons, and another area for magpies, your attraction is not only boring but has two enclosures. Therefore, one day would cost (£23×2)+(£7×2)+(£11×2)= £46+£14+£22= £82. If you have even more enclosures, you will need to spend more to keep it open, so calculate it carefully!
Staffing
You will need to have people working at your attraction. You will need at least one member of staff for each area. Don’t forget, that will also include the restaurant, gift shop and ticket desk as well as for each animal enclosure. Below is information about the minimum wage in the UK. This is how much each person must receive per hour working at your attraction.
How many hours will you be open for each day? If you are open for 5 hours, one member of staff will receive £8.72 x 5 = £43.60 for that day. If you have 5 members of staff working for you, you will pay your staff £43.60 x 5 = £218 per day. If you are open 7 days a week, you will pay your 5 members of staff £218 x 7 = £1526 each week. How many weeks will you be open for each year. If you never close, you’ll be open for 52 weeks, which means you will pay your 5 members of staff £1526 x 52 = £79,352 per year. This needs to be remembered when working out your profit.
Profit
How much will you charge for admission to your attraction? You don’t want to be greedy and too expensive so people will come, but you want to cover the costs of your attraction and staffing. Be sensible and plan for the worst case scenario- how many people would visit on average each day? 20 adults and 10 children? Do you think more or less? It’s up to you.
If you charge each adult £6 for example, and you receive 20 adults each day, that would be £6 x 20 = £120 per day. Per week, those 20 adults would bring £120 x 7 = £840. Each year, that would bring you £840 x 52= £43,680. Would that cover all of the costs involved? You’ll need to plan it carefully.
Explain your costs involved carefully. Organise it with subheadings like above. Show your working out for each step, explaining each calculation as above. When you have completed this work, please email it to us so we can see it. y5upload@broadheath.coventry.sch.uk
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