Storytime Park competes with Fun World by providing a variety of rides. Storytime sells tickets at $85 per person as a one-day entrance fee. Variable costs are $17 per person, and fixed costs are $428, per month. Under these conditions, the breakeven point in tickets is 6,300 and the breakeven point in sales dollars is $535,500. Read the requirements. Requirement 1. Suppose Storytime Park cuts its ticket price from $85 to $68 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 Storytime 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".) = Required sales in units Requirements 1. Suppose Storytime Park cuts its ticket price from $85 to $68 to increase the number of tickets sold. Compute the new breakeven point in tickets and in sales dollars. 2. Ignore the information in Requirement 1. Instead, assume that Storytime Park increases the variable cost from $17 to $34 per ticket. Compute the new breakeven point in tickets and in sales dollars. Print Done - X

Storytime Park competes with Fun World by providing a variety of rides. Storytime sells tickets at $85 per person as a one-day entrance fee. Variable costs are $17 per person, and fixed costs are $428, per month. Under these conditions, the breakeven point in tickets is 6,300 and the breakeven point in sales dollars is $535,500. Read the requirements. Requirement 1. Suppose Storytime Park cuts its ticket price from $85 to $68 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 Storytime 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".) = Required sales in units Requirements 1. Suppose Storytime Park cuts its ticket price from $85 to $68 to increase the number of tickets sold. Compute the new breakeven point in tickets and in sales dollars. 2. Ignore the information in Requirement 1. Instead, assume that Storytime Park increases the variable cost from $17 to $34 per ticket. Compute the new breakeven point in tickets and in sales dollars. Print Done - X

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter2: Building Blocks Of Managerial Accounting

Section: Chapter Questions

Problem 11EB: Able Transport operates a tour bus that they lease with terms that involve a fixed fee each month...

See similar textbooks

Similar questions

Playtime Park competes with Water World by providing a variety of rides. Playtime sells tickets at $110 per person as a one-day entrance fee. Variable costs are $44 per person, and fixed costs are $412,500 per month. The breakeven number of tickets is 6,250. If Playtime Park expects to sell 6,400 tickets, compute the margin of safety in tickets and in sales dollars.
Funday Park competes with Cool World by providing a variety of rides. Funday sells tickets at $85 per person as a one-day entrance fee. Variable costs are $17 per person, and fixed costs are $428,400 per month. Compute Funday Park's contribution margin ratio. Carry your computation to two decimal places. Use the contribution margin ratio approach to determine the sales revenue Funday Park needs to break even. Begin by selecting the formula labels and then enter the amounts to compute the contribution margin ratio. (Enter you answer to the nearest percent, X%.) ÷ = Contribution margin ratio ÷ = % Begin by selecting the formula and then entering the amounts to calculate the sales in dollars Funday needs to break even. (Abbreviation used: CM = contribution margin. Complete all input fields. For items with a zero value, enter "0".) ( + ) ÷ = Required sales in dollars…
Wild-Water Works Water Park provides for a fun day by offering a variety of rides. Wild-Water Works Water Park sells tickets at $74 per person as a one-day entrance fee. Variable costs per person are $34 and fixed cost amount to $222,300 per month.Wild-Water Works Water Park expects to sell 7,900 tickets. Find break-even first, then compute the margin of safety in tickets and sales in dollars.
Imaginationtime Park competes with Cool World by providing a variety of rides. Imaginationtime sells tickets at $60 per person as a one-day entrance fee. Variable costs are $24 per person, and fixed costs are $226,800 per month. Compute the contribution margin per unit and the number of tickets Imaginationtime 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 Imaginationtime must sell to break even. (Abbrevision used: CM = contribution margin. Complete all input fields. For items with a zero value, enter "0".) ( + ) ÷ = Required sales in units (…
Wild-Water Works Water Park provides for a fun day by offering a variety of rides. Wild-Water Works Water Park sells tickets at $75 per person as a one-day entrance fee. Variable costs per person are $34 and fixed cost amount to $221,100 per month. Wild-Water Works Water Park expects to sell 7,500 tickets. Find break-even first, then compute the margin of safety in tickets and sales in dollars. Net sales revenue per unit - Variable costs per unit = Unit contribution margin 1607 + (Fixed Costs +Target Profit) / Contribution Margin per unit = Required Sales in Units = Expected Sales Break-even sales = Margin of safety in units Margin of safety in units X Sales price per unit = Margin of safety in dollars X ||
Wild-Water Works Water Park provides for a fun day by offering a variety of rides. Wild-Water Works Water Park sells tickets at $69 per person as a one-day entrance fee. Variable costs per person are $24 and a fixed cost amount to $236,300 per month. (Round your answers to two decimal places when needed and use rounded answers for all future calculations). 1. Compute the new contribution margin per unit and the contribution margin ratio if Wild-Water Works Water Park cuts it ticket price to $40 per person. Net Sales revenue per unit Contribution margin / Net sales revenue = Contribution margin ratio (%) (Fixed Costs 2. Find the break-even point in units and in dollars using the contribution margin approach. (Reminder to write answer in whole units). + Variable costs per unit = Unit Contribution margin (Fixed Costs + Target Profit) / (Contribution Margin per unit) + + Target Profit) 1 = = 1 / (Contribution Margin ratio %) = = Required Sales in Units Required Sales in Dollars
Able Transport operates a tour bus that they lease with terms that involve a fixed fee each month plus a charge for each mile driven. Able Transport drove the tour bus 4,000 miles and paid a total of $1,250 in March. In April, they paid $970 for 3.000 miles. What is the variable cost per mile if Able Transport uses the high-low method to analyze costs?
Use the following information to complete Short Exercises S20-10 through S20-13. Funday Park competes with Cool World by providing a variety of rides. Funday Park sells tickers at $70 per- person as a one-day entrance fee. Variable costs are $42 per person, and fixed costs are $170,800 per month Applying sensitivity analysis of Changing fixed costs Refer to the original information (ignoring the changes considered in Short Exercise S20-20) Suppose Funday Park increases fixed costs from $170,800 per month to $231,000 per month. Compute the new breakeven point in tickets and in sales dollars.
A travel agency has a holiday package that sells for OMR 125. Fixed costs are OMR 80000; and at the present volume of 1000 customers, variable costs are OMR 25000 and profits are OMR 20000. (a) What is the break-even point volume? (b) Assuming that fixed costs remain constant, how many additional customers will be required for the agency to increase profit by OMR 1000? (Ans. (a) 800 units (b) 10 customers)
Wild-Water Works Water Park provides for a fun day by offering a variety of rides. Wild-Water Works Water Park sells tickets at $79 per person as a one-day entrance fee. Variable costs per person are $33 and fixed cost amount to $131,000 per month.Wild-Water Works Water Park expects to sell 7,300 tickets. Estimate the operating income if sales increase by 15%.Calculate the degree of operating leverage.(Round your answers to two decimal places when needed and use rounded answers for all future calculations.)
Wild-Water Works Water Park provides for a fun day by offering a variety of rides. Wild-Water Works Water Park sells tickets at $80 per person as a one-day entrance fee. Variable costs per person are $34 and fixed cost amount to $138,000 per month. Wild-Water Works Water Park expects to sell 7,100 tickets. Estimate the operating income if sales increase by 15%. Calculate the degree of operating leverage. (Round your answers to two decimal places when needed and use rounded answers for all future calculations.) Contribution Margin / Operating Income = Decree of Operating Leverage Percent change in Sales Revenue (%) Operating Income X X X X Degree of operating leverage Percent change in operating income (%) = = Percent change in operating income (%) Dollar change in operating income
The Marla and Kerry Theatre Group operates five discount movie theatres in the Chicago area. All tickets are priced at P1.75. Variable costs are P1.10 per patron, and the fixed costs per year total P900,000. The fixed costs include concessions, but the variable costs do not. The concessions earn an average contribution margin of P.60 per patron. a. How many patrons are required to break even? b. If 800,000 patrons are expected for the year, what ticket price would be necessary to earn a profit of P150,000? Determine the number of units to be sold of each of the products to breakeven.