Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Sillyday Park competes with Fun World by providing a variety of rides. Sillyday sells tickets at $125 per person as a one-day entrance fee. Variable
Sillyday Park competes with Fun World by providing a variety of rides. Sillyday sells tickets at $125 per person as a one-day entrance fee. Variable costs are $75 per person, and fixed costs are $325,000 per month. Compute the contribution margin per unit and the number of tickets Sillyday Park must sell to break even. Perform a numerical proof to show that your answer is correct. Begin by selecting the formula labels and then entering the amounts to compute the contribution margin per unit. Contribution margin per unit Begin by selecting the formula labels and then entering the amounts to compute the number of tickets Sillyday must sell to break even. (Abbrevision used: CM = contribution margin. Complete all answer boxes. For items with a zero value, enter "0".) Required sales in units Perform a numerical proof that the number of tickets to breakeven you computed in the preceding step is correct. Begin by selecting the formula and then entering the amounts to compute the target profit to breakeven. Complete all answer boxes. For items with a zero value, enter "o".) -Target profit
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