MusicLand Theme Park has an average daily admission price of $60 per guest. The following financial data are available for analysis: Daily operating fixed costs $750,000 Variable daily operating cost per guest 24 Average daily concession revenue per guest 30 Average daily variable cost of concession items per guest 16 Additional operating data indicate that the park averages 24,000 daily guests during the weekdays and 40,000 average daily guests on Saturdays and Sundays. a. Determine the break-even number of guests per day at the theme park. fill in the blank 1 guests per day b. How much profit does MusicLand earn on an average weekday? $fill in the blank 2 c. How much profit does MusicLand earn on an average weekend day? $fill in the blank 3
MusicLand Theme Park has an average daily admission price of $60 per guest. The following financial data are available for analysis:
| Daily operating fixed costs | $750,000 | |
| Variable daily operating cost per guest | 24 | |
| Average daily concession revenue per guest | 30 | |
| 16 |
Additional operating data indicate that the park averages 24,000 daily guests during the weekdays and 40,000 average daily guests on Saturdays and Sundays.
a. Determine the break-even number of guests per day at the theme park.
fill in the blank 1 guests per day
b. How much profit does MusicLand earn on an average weekday?
$fill in the blank 2
c. How much profit does MusicLand earn on an average weekend day?
$fill in the blank 3
d. Determine the revised break-even if the daily fixed costs increased to $1,000,000.
20000 guests per day
e. Would the theme park still remain profitable for an average weekday under the scenario in (d)?
The average daily admissions are fill in the blank 5 for the average weekday. Thus, the park still operates above
break-even and is therefore profitable with the increased fixed costs. The daily profit would be $fill in the blank 10.
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