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2. Splashtime Park is a water park that provides a variety of water rides at its park. Splashtime Park sells tickets at $60 per person

2. Splashtime Park is a water park that provides a variety of water rides at its park. Splashtime Park sells tickets at $60 per person as a one-day entrance fee. Variable costs are $24 per person, and fixed costs are $226,800 per month.

How much must Splashtime earn in Sales Revenue per month to earn a target profit of $120,000

  • $9,634

  • $12,100

  • $578,000

  • $867,000

3. Splashtime Park is a water park that provides a variety of water rides at its park. Splashtime Park sells tickets at $60 per person as a one-day entrance fee. Variable costs are $24 per person, and fixed costs are $226,800 per month. Splashtime Park would like to introduce a new marketing campaign for the upcoming summer in hopes that it will increase sales. The new campaign would increase fixed costs by $24,000. What is the impact of this campaign on the companys break-even point?

  • Break-even point will decrease.

  • Break-even point will increase.

  • Break-even point will not be affected.

  • There is not sufficient information to determine the effect on break-even point.

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