Dream Park sells tickets at $60 per person as a one-day entrance fee. Variable costs are...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Dream Park 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. Required: 1- Compute the number of tickets Dream Park must sell to break even. 2- Compute the sales revenue Dream Park needs to break even. 3- What will be the effect on net income if the Dream Park sold tickets less than its break- even? Explain. 4- How many tickets Hamad Park must sell to achieve a target profit of $180,000 5- If Dream Park expects to sell 7,000 tickets, what will be its contribution margin and its net operating income? Dream Park 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. Required: 1- Compute the number of tickets Dream Park must sell to break even. 2- Compute the sales revenue Dream Park needs to break even. 3- What will be the effect on net income if the Dream Park sold tickets less than its break- even? Explain. 4- How many tickets Hamad Park must sell to achieve a target profit of $180,000 5- If Dream Park expects to sell 7,000 tickets, what will be its contribution margin and its net operating income?
Expert Answer:
Answer rating: 100% (QA)
Answer 1 To calculate the breakeven point in units use the formula BreakEven poin... View the full answer
Related Book For
Public Finance A Contemporary Application of Theory to Policy
ISBN: 978-1285173955
11th edition
Authors: David N Hyman
Posted Date:
Students also viewed these accounting questions
-
The College Avenue Sub Shop is located in a small college town. Virtually all of its phone delivery orders are in the evening, between 5:00 P.M. and 1:00 A.M., so the shop has a delivery person for...
-
A worker lives in a state that has its own income tax. The worker is in the 31 percent federal tax bracket. In addition, he is subject to a 9 percent MTR for his state income tax. Assume that...
-
A particle is located in a two-dimensional square potential well with absolutely impenetrable walls (0 < x < a, 0 < y < b). Find the probability of the particle with the lowest energy to be located...
-
At t = 0, a particle is traveling parallel to very large insulating plate at a 0.360 m distance with a speed of 980 m/s. Consider that the insulating plate has uniform surface charge density 2.34. x...
-
Can an individual make a contribution to an IRA based on the receipt of unemployment compensation?
-
What are the advantages of trust SAP?
-
Stockholders' equity information for two independent companies, Monterrey Enterprises, Inc., and Guadalupe Corp., follow. - Monterrey Enterprises, Inc. Monterrey is authorized to issue 60,000 shares...
-
Tarp Department Store is located in midtown Platteville. During the past several years, net income has been declining because of suburban shopping centers. At the end of the companys fiscal year on...
-
Leeggara Company has an issue of 8-year, 11% annual coupon bonds outstanding. The bonds, which were originally issued 12 years ago, have a face value (FV) of $1,000, a yield-to-maturity (YTM) of 7%,...
-
Use the from step b) to compute the monthly excess outperformance (or underperformance in case the number is negative) of Fund X. The formula is: RX - RVG (as a reminder Rx and Rvg are excess returns...
-
Why is Amazon building more warehouses as it grows? How many warehouses should it have and where should they be located?
-
How do the various forms of economic integration differ?
-
Do you think trading companies such as Japans sogo shosha will ever become common in the United States? Why or why not?
-
How does the WTO differ from the GATT?
-
What are NAFTAs major provisions?
-
Discuss the factors that a firm should consider in deciding whether to enter a foreign market.
-
Micron Technology's bonds currently sell for $1,270 and have a par value of $1,000. They pay a $105 annual coupon and have a 15-year maturity, but they can be called in 5 years at $1,100. What is...
-
(a) Bright Sdn Bhd (BSB) is a tax resident manufacturing company in Johor, which involves in ceramic tiles. Currently, BSBs annual sales turnover has been forecasted to be around RM 300,000 for the...
-
Two alternative programs to save 50 more lives per year entail providing more cardiac intensive care facilities and redesigning dangerous highway interchanges. The price of a new cardiac intensive...
-
Indicate whether you agree with the following statement, and give your reasons for doing so: "If the beltline surrounding the city of Raleigh were a pure public good, efficiency would require that...
-
A workshop designed to retrain workers 55 years of age and older who have lost their jobs is proposed. Suppose the workshop will increase the income of each participant by $1,000 per year for a...
-
An automobile's suspension system determines the vehicle's response to inputs from uneven road surfaces. Figure 3.56 shows a drawing of a suspension system that includes a coil spring, a shock...
-
For a mass-spring-damper system under harmonic loading per unit mass \(F(t) / m=\cos \omega t \mathrm{ft} / \mathrm{s}^{2}\), solve for the response amplitude for the case where \(k=\) \(20...
-
For the system in Figure 3.57, the forcing per unit mass is \(F(t) / m=10 \sin 15 t \mathrm{ft} / \mathrm{s}^{2}\). Solve for the transient response, the steady-state response, and the constants of...
Study smarter with the SolutionInn App