Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Sillytime Park competes with Slide World by providing a variety of rides. Sillytime sells tickets at $70 per person as a one-day entrance fee. Variable

image text in transcribed
Sillytime Park competes with Slide World by providing a variety of rides. Sillytime sells tickets at $70 per person as a one-day entrance fee. Variable costs are $28 per person, and fixed costs are $258,300 per month. Under these conditions, the breakeven point in tickets is 6,150 and the breakeven point in sales dollars is $430,500 Read the requirements 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") ( Fixed costs Target profit )+ CM per unit Required sales in units ( $ 258,300 $ 0 ) - $ 28 9,225 + + 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") ( Fixed costs Target profit) CM ratio = Required sales in dollars ( $ 258,300 + $ 0 50 % $ 516,600 + Requirement 2. Ignore the information in Requirement 1. Instead, assume that Sillytime Park increases the variable cost from $28 to $35 per ticket. Compute the new breakeven point in tickets and in sales dollars. N. The new breakeven point in tickets is

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

Cryptocurrency 101 The Millennials Guide To Understanding And Investing In Crypto

Authors: Candide Ahouandjinou, Jamal Modica

979-8387066771

More Books

Students also viewed these Accounting questions