Compute Story Parks contribution margin ratio. Carry your computation to two decimal places. Use the contribution margin

Question:

Compute Story Park’s contribution margin ratio. Carry your computation to two decimal places. Use the contribution margin ratio approach to determine the sales revenue Story Park needs to break even.

Story Park competes with Splash World by providing a variety of rides. Story Park sells tickets at $ 50 per person as a one- day entrance fee. Variable costs are $ 10 per person, and fixed costs are $ 240,000 per month.

Contribution Margin
Contribution margin is an important element of cost volume profit analysis that managers carry out to assess the maximum number of units that are required to be at the breakeven point. Contribution margin is the profit before fixed cost and taxes...