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Playtime Park competes with Water World by providing a variety of rides. Playtime Park sells tickets at $ 60 per person as a one-day entrance
Playtime Park competes with Water World by providing a variety of rides. Playtime Park sells tickets at $ 60 per person as a one-day entrance fee. Variable costs are $ 24 per person, and fixed costs are $ 226,800 per month. The break-even number of tickets is 6,300. If Playtime Park expects to sell 7,000 tickets, compute the contribution margin, operating income, and operating leverage, Estimate the operating income if sales increase by 15 %.
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