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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 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 dollar 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".) ) + CM per unit = Required sales in units = 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 yolun ontor "0") Enter the ptribution morgin ratio Yo Complete all input fieldo For itome wit

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 dollar 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".) ) + CM per unit = Required sales in units = 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 yolun ontor "0") Enter the ptribution morgin ratio Yo Complete all input fieldo For itome wit

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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 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".) CM per unit Required sales in units + + + 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".) Required sales in dollars + = % The new breakeven point in sales dollars is = - = 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
Transcribed Image Text: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".) CM per unit Required sales in units + + + 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".) Required sales in dollars + = % The new breakeven point in sales dollars is = - = 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
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