Question
Park competes with Fun World by providing a variety of rides. Funtime sells tickets at $ 70 per person as aone-day entrance fee. Variable costs
Park competes with Fun World by providing a variety of rides. Funtime sells tickets at $ 70 per person as aone-day entrance fee. Variable costs are $ 42 perperson, and fixed costs are $170,800 per month. Compute the contribution margin per unit and the number of tickets Funtime Park must sell to break even. Perform a numerical proof to show that your answer is correct.
(Fixed costs + Target Profit) / CM per unit = Required sales in units
(170800 + 0) / ? = ?
Find the Required sales in units
Also find the Target Profit
Net Sales - Variable Costs - Fixed Costs = ?
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