Funday Park competes with Cool World by providing a variety of rides. Funday Park sells tickets 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 fixed costs

Refer to the original information (ignoring the changes considered in Short Exercise $21-12). Suppose Funday Park increases fixed costs from $170,800 per month to $231,000 per month. Compute the new breakeven point in tickets and in sales dollars.

Answer rating: 100% (QA)

Fixed Costs Fixed costs are those costs incurred for a particular period and does not increase or decrease with the changes in the production activity ... View the full answer