Dream Park sells tickets at $60 per person as a one-day entrance fee. Variable costs are...

  

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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?

Answer rating: 100% (QA)

Answer 1 To calculate the breakeven point in units use the formula BreakEven poin... View the full answer