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Playtime Park competes with Zip World by providing a variety of rides. Playtime Park sells tickets at $90 per person as a one-day entrance fee.
Playtime Park competes with Zip World by providing a variety of rides. Playtime Park sells tickets at $90 per person as a one-day entrance fee. Variable costs are $18 per person, and fixed costs are $464,400 per month. The breakeven number of tickets is 6,450. If Playtime Park expects to sell 7,950 tickets, compute the degree of operating leverage (round to two decimal places). Estimate the operating income if sales increase by 20%. Begin by selecting the formula labels and then entering the amounts to compute the degree of operating leverage for Playtime Park. (Round the degree of operating leverage to two decimal places, X.XX.) Degree of operating leverage Contribution margin Expected sales in dollars Expected sales in units Fixed costs Operating income Sales revenue Variable costs Choose from any drop-down list and then click Check Answer. 2 parts Clear All Check Answer remaining
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