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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