Refer to the original information (ignoring the changes considered in Short Exercises S21-12 and S21-13). If Funday Park expects to sell 8,100 tickets, compute the degree of operating leverage (round to two decimal places). Estimate the operating income if sales increase by 15%.
Refer to Exercise S21-12 and S21-13,
Using the Funday Park information presented, do the following tasks.
Requirements
1. Suppose Funday Park cuts its ticket price from $70 to $56 to increase the number of tickets sold. Compute the new breakeven point in tickets and in sales dollars.
2. Ignore the information in Requirement 1. Instead, assume that Funday Park increases the variable cost from $42 to $56 per ticket. Compute the new breakeven point in tickets and in sales dollars.
Use the following information to complete Short Exercises.
Funday Park competes with Cool World by providing a variety of rides. Funday Park sells tickets at $70 per person as a one-day entrance fee. Variable costs are $42 per person, and fixed costs are $170,800 per month?