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Imagination Park competes with Slide World by providing a variety of rides. Imagination sells tickets at $110 per person as a one-day entrance fee. Variable
Imagination Park competes with Slide World by providing a variety of rides. Imagination sells tickets at $110 per person as a one-day entrance fee. Variable costs are $44 per person, and fixed costs are $412,500 per month. Under these conditions, the breakeven point in tickets is 6,250 and the breakeven point in sales dollars is $687,500. Read the requirements. Requirement 1. Suppose Playtime Park cuts its ticket price from $60 to $54 to increase the number of tickets sold. Compute the new breakeven point in tickets and in sales dollars. Begin by selecting the formula labels and then entering the amounts to compute the number of tickets Playtime must sell to break even under this scenario. (Abbreviation used: CM - contribution margin. Complete all answer boxes. For items with a zero value, enter "O".) Required sales in units Next, select the formula and then enter the amounts to calculate the sales in dollars Playtime needs to break even under this scenario. (Abbreviation used: CM = contribution margin. Enter the contribution margin ratio as a percentage to four decimal places, X.XXXX%. Complete all answer boxes. For items with a zero value, enter "0".) ) Required sales in dollars )/ Requirement 2. Ignore the information in Requirement 1. Instead, assume that Playtime Park increases the variable cost from $24 to $30 per ticket. Compute the new breakeven point in tickets and in sales dollars. The new breakeven point in tickets is The new breakeven point in sales dollars is $ Requirements 1. Suppose Imagination Park cuts its ticket price from $110 to $88 to increase the number of tickets sold. Compute the new breakeven point in tickets and in sales dollars. 2. Ignore the information in Requirement 1. Instead, assume that Imagination Park increases the variable cost from $44 to $55 per ticket. Compute the new breakeven point in tickets and in sales dollars
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