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i X Requirements 1. Compute the contribution margin per unit and the number of tickets Sillytime Park must sell to break even. Perform a numerical
i X Requirements 1. Compute the contribution margin per unit and the number of tickets Sillytime Park must sell to break even. Perform a numerical proof to show that your answer is correct. 2. Compute Sillytime Park's contribution margin ratio. Carry your computation to two decimal places. Use the contribution margin ratio approach to determine the sales revenue Sillytime Park needs to break even. 3. a. Suppose Sillytime Park cuts its ticket price from $125 to $100 to increase the number of tickets sold. Compute the new breakeven point in tickets and in sales dollars. b. Ignore the information in Requirement 3a. Instead, assume that Sillytime Park increases the variable cost from $75 to $85 per ticket. Compute the new breakeven point in tickets and in sales dollars. 4. Ignore Requirements 3a and 3b. Suppose Sillytime Park reduces fixed costs from $325,000 per month to $324,000 per month. Compute the new breakeven point in tickets and in sales dollars. 5. Ignore Requirements 3 and 4. If Sillytime Park expects to sell 6,600 tickets, compute the margin of safety in tickets and in sales dollars. 6. Ignore Requirements 3 and 4. If Sillytime Park expects to sell 6,600 tickets, compute the operating leverage. Estimate the operating income if sales increase by 10%. Print Done
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