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Park competes with World by providing a variety of rides. sells tickets at $110 per person as a​ one-day entrance fee. Variable costs are $44 per​ person, and fixed costs $412,500 are per month. Under these​ conditions, the breakeven point in tickets is 6,250 and the breakeven point in sales dollars is ​$687,500.
Requirement
1. Suppose Park cuts its ticket price from to to increase the number of tickets sold. Compute the new breakeven point in tickets and in sales dollars. 2. Begin by selecting the formula labels and then entering the amounts to compute the number of tickets must sell to break even under this scenario

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Answer:

Instructions are below.

Explanation:

Giving the following information:

Variable costs are $44 per​ person

Fixed costs $412,500

Let's suppose that the new selling price is $100.

To calculate the break-even point in units and dollars, we need to use the following formulas:

Break-even point in units= fixed costs/ contribution margin per unit

Break-even point in units= 412,500 / (100 - 44)

Break-even point in units= 7,366 units

Break-even point (dollars)= fixed costs/ contribution margin ratio

Break-even point (dollars)= 412,500 / (56/100)

Break-even point (dollars)= $736,607

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