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Break-even number of guests for a theme park MusicLand Theme Park has an average daily adm ission price of $60 per guest. The following financial
Break-even number of guests for a theme park
- MusicLand Theme Park has an average dailyadmission price of $60 per guest. The following financial data are available for analysis:
- Daily operating fixed costs$750,000Variable daily operating cost per guest24Average daily concession revenue per guest30Average daily variable cost of concession items per guest16
- Additional operating data indicate that the park averages 24,000 daily guests during the weekdays and 40,000 average daily guests on Saturdays and Sundays.
- Determine the break-even number of guests per day at the theme park.
- How much profit does MusicLand earn on an average weekday?
- How much profit does MusicLand earn on an average weekend day?
- Determine the revised break-even if the daily fixed costs increased to $1,000,000.
- Would the theme park still remain profitable for an average weekday under the scenario in (D)?
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