Question

Using the Playtime Park information presented, do the following tasks.
Playtime Park competes with Water World by providing a variety of rides. Playtime 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.
Requirements
1. Suppose Playtime Park cuts its ticket price from $60 to $54 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 Playtime Park increases the variable cost from $24 to $30 per ticket. Compute the new breakeven point in tickets and in sales dollars.


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  • CreatedJune 15, 2015
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