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 $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.)

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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