Question
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
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$9,634
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$12,100
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$578,000
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$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?
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Break-even point will decrease.
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Break-even point will increase.
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Break-even point will not be affected.
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There is not sufficient information to determine the effect on break-even point.
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