Answered step by step
Verified Expert Solution
Question
1 Approved Answer
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
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. Under these conditions, the breakeven point in tickets is 6, 300 and the breakeven point in sales dollars is $378,000. 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. 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. 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 "0".) 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".) 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 $
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started