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
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Complete all requirements
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Transcribed Image Text: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 $428,400 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
+
G
=
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
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