Question

Using the Story Park information presented, do the following tasks.
Story Park competes with Splash World by providing a variety of rides. Story Park sells tickets at $ 50 per person as a one-day entrance fee. Variable costs are $ 10 per person, and fixed costs are $ 240,000 per month.

Requirements
1. Suppose Story Park cuts its ticket price from $ 50 to $ 40 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 Story Park increases the variable cost from $ 10 to $ 20 per ticket. Compute the new breakeven point in tickets and in sales dollars.



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  • CreatedJanuary 16, 2015
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