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Analyze MusicLand Theme Park's cost - volume - profit relationships MusicLand Theme Park has an average daily admission price of $ 6 0 per guest.
Analyze MusicLand Theme Park's costvolumeprofit relationships
MusicLand Theme Park has an average daily admission price of $ per guest. The following financial data are available for analysis:
Daily operating fixed costs
$
Variable daily operating cost per guest
Average daily concession revenue per guest
Average daily variable cost of concession items per guest
Additional operating data indicate that the park averages daily guests during the weekdays and average daily guests on Saturdays and Sundays.
a Determine the breakeven number of guests per day at the theme park. guests per day
b How much profit does MusicLand earn on an average weekday?
c How much profit does MusicLand earn on an average weekend day?
$
d Determine the revised breakeven if the daily fixed costs increased to $ guests per day
e Would the theme park still remain profitable for an average weekday under the scenario in d
The average daily admissions are for the average weekday. Thus, the park still operates breakeven and is therefore profitable with the fixed costs. The daily would be $
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