Question
Park competes with World by providing a variety of rides. sells tickets at $125 per person as a one-day entrance fee. Variable costs are $75per
Park competes with World by providing a variety of rides. sells tickets at $125 per person as a one-day entrance fee. Variable costs are $75per person, and fixed costs are per month. Under these conditions, the breakeven point in tickets is and the breakeven point in sales dollars is $812.500.
Requirement 1. Suppose
Story
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.
Begin by selecting the formula labels and then entering the amounts to compute the number of tickets
Story
must sell to break even under this scenario. (Abbreviation used: CM = contribution margin. Complete all input fields. For items with a zero value, enter "0".)
. | Suppose Story 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. |
2. | Ignore the information in Requirement 1. Instead, assume that Story Park increases the variable cost from$75 to$85 per ticket. Compute the new breakeven point in tickets and in sales dollars. |
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