Imaginationtime Park competes with H2O World by providing a variety of rides. Imaginationtime Park 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. The breakeven number of tickets is 6,300. If Imaginationtime Park expects to sell 7,550 tickets, compute the degree of operating leverage (round to two decimal places). Estimate the operating income if sales increase by 10%. Begin by selecting the formula labels and then entering the amounts to compute the degree of operating leverage for Imaginationtime Park. (Round the degree of operating leverage to two decimal places, X.XX.) Contribution margin Operating income Degree of operating leverage ÷ Estimate the new operating income if total sales increase by 10%. (Round your final answer to the nearest dollar) The estimated operating income will be
Imaginationtime Park competes with H2O World by providing a variety of rides. Imaginationtime Park 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. The breakeven number of tickets is 6,300. If Imaginationtime Park expects to sell 7,550 tickets, compute the degree of operating leverage (round to two decimal places). Estimate the operating income if sales increase by 10%. Begin by selecting the formula labels and then entering the amounts to compute the degree of operating leverage for Imaginationtime Park. (Round the degree of operating leverage to two decimal places, X.XX.) Contribution margin Operating income Degree of operating leverage ÷ Estimate the new operating income if total sales increase by 10%. (Round your final answer to the nearest dollar) The estimated operating income will be
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Imaginationtime Park competes with H2O World by providing a variety of rides. Imaginationtime Park 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. The breakeven number of tickets is 6,300. If Imaginationtime Park expects to sell 7,550 tickets, compute the degree of operating leverage (round to two decimal places). Estimate the
operating income if sales increase by 10%.
Begin by selecting the formula labels and then entering the amounts to compute the degree of operating leverage for Imaginationtime Park. (Round the degree of operating leverage to two decimal places, X.XX.)
Contribution margin
Operating income
Degree of operating leverage
÷
Estimate the new operating income if total sales increase by 10%. (Round your final answer to the nearest dollar)
The estimated operating income will be
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