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Group Category

Team Activity & Research

Group Name

Team 1

Instructions

Team Activity:

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	$750,000
Variable daily operating cost per guest	24
Average daily concession revenue per guest	30
Average daily variable cost of concession items per guest	16

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)?