Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

please computer writing and Clear coordination thanks S20-11 Applying sensitivity analysis of changing sales price and variable cost Learning Objective 4 Playtime Park competes with

please computer writing
and Clear coordination
thanks image text in transcribed
S20-11 Applying sensitivity analysis of changing sales price and variable cost Learning Objective 4 Playtime Park competes with Water World by providing a variety of rides. Playtime Park sells tickets a $60 per person as a one-day entrance fee. Variable costs are $24 per person, and fixed costs are $226,800 per month. Using the Playtime Park information presented, do the following tasks Requirements: Compute Playtime Park's contribution margin ratio. Determine the sales revenue Playtime Park needs to break even 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 3. 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. If Playtime Park expects to sell 7,000 tickets, compute the margin of safety in tickets and in sales dollars SOLUTION

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting And Money For Ministerial Leadership Key Practical And Theological Insights

Authors: Nimi Wariboko

1st Edition

1625640129, 9781625640123

More Books

Students also viewed these Accounting questions

Question

What is meant by prediction accuracy?

Answered: 1 week ago