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. .....

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. .....

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...

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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.
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 ||
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…
Playpals Park competes with Slide World by providing a variety of rides. Playpals Park sells tickets at $70 per person as a one-day entrance fee. Variable costs are $28 per person, and fixed costs are $258,300 per month. Under these conditions the breakeven point in tickets is 6,150 and in sales dollars is $430,500. Suppose Playpals Park increases fixed costs from $258,300 per month to $304,500 per month. 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 Playpals must sell to break even if its fixed costs are increased to $304,500. (Abbreviation used: CM = contribution margin. Complete all answer boxes. For items with a zero value, enter "0".) ) = = G Required sales in units
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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 (…
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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
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 sales price and variable cost Using the Funday Park information presented, do the following tasks. Requirements Suppose Funday Park cuts its ticket price from $70 to $56 to increase the number of tickets sold. Compute the new breakeven point in tickets and in sales dollars. Ignore the information in Requirement 1. Instead, assume that Funday Park increases the variable cost from $42 to $36 per ticket. Compute the new breakeven point in tickets and in sales dollars.
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Valet Seating Company is currently selling 3,200 oversized bean bag chairs a month at a price of $74 per chair. The variable cost of each chair sold includes $35 to purchase the bean bag chairs from suppliers and a $5 sales commission. Fixed costs are $13,000 per month. The company is considering making several operational changes and wants to know how the change will impact its operating income.