Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Break-even number of guests for a theme park MusicLand Theme Park has an average daily admission price of $60 per guest. The following financial data
Break-even number of guests for a theme park MusicLand Theme Park has an average daily admission price of $60 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 24,000 daily guests during the weekdays and 40,000 average daily guests on Saturdays and Sundays a. Determine the break-even number of guests per day at the theme park. $750,000 24 30 16 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 break-even if the daily fixed costs increased to $1,000,000. 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 break-even and is therefore for the average weekday. Thus, the park still operates with the fixed costs. The daily would be
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started