What Is The Three Likely Alternative For Admission Pricing At Science Experience Case Analysis

INTRODUCTION
In this report, I will analyze the three likely alternative for admission pricing at Science Experience (SciExperience). Additionally, I will provide an overview on the best and worst case scenarios regarding these options.
OPTION 1
QUANTITAIVE ANALYSIS
This option’s pricing structure is that adults and students are charged the same admission fee and seniors and preschoolers are allowed in for free. I have analyzed this alternative in tab 1 of the attached excel spreadsheet. In this option, SciExperience would consider the following:
• A Government subsidy of $750,000 for the first two years
• Advertising costs of $325,000 per year resulting in an increase of 20% admission per year beginning in year 3
• Fixed costs of 3,925,000

This would have to be further investigated.
QUALITATIVE ANALYSIS
Under this option, these are the following

I have analyzed this alternative in tab 3 of the attached excel spreadsheet. In this option, SciExperience would consider the following:
• A Government subsidy of $750,000 for the first two years
• Corporate sponsorship proposal of $750,000 for year 3 and beyond
• Fixed costs of 3,925,000 per year
Under the most likely scenario of 500,000 patrons per year and admission breakdown of 30% adults, 50% students, 10% seniors and 10% preschoolers, the breakeven prices are as follows:
• In all years – adults and students should be charged $7.83/ticket
Under the best-case scenario of 600,000 patrons per year and admission breakdown of 35% adults, 55% students, 5% seniors and 5% preschoolers, the breakeven prices are as