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Sillytime Park competes with Cool World by providing a variety of rides. Sillytime sells tickets at $100 per person as a one-day entrance fee. Variable
Sillytime Park competes with Cool World by providing a variety of rides. Sillytime sells tickets at $100 per person as a one-day entrance fee. Variable costs are $60 per person, and fixed costs are $254,000 per month. Under these conditions, the breakeven point in tickets is 6,350 and the breakeven point in sales dollars is $635,000. Read the requirements. Requirement 1. Suppose Sillytime Park cuts its ticket price from $100 to $80 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 Sillytime must sell to break even under this scenario. (Abbreviation used: CM = contribution margin. Complete all input fields. For items with a zero value, enter "0".) Next, select the formula and then enter the amounts to calculate the sales in dollars Sillytime needs to break even under this scenario. (Abbreviation used: CM = contribution margin. Enter the contribution margin ratio to the nearest percent, X\%. Complete all input fields. For items with a zero value, enter "0".) Requirement 2. Ignore the information in Requirement 1. Instead, assume that Sillytime Park increases the variable cost from $60 to $75 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
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