Financial And Managerial Accounting
15th Edition
ISBN: 9781337902663
Author: WARREN, Carl S.
Publisher: Cengage Learning,
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Chapter 20, Problem 4MAD
Break-even number of guests for a theme park
MusicLand Theme Park has an average daily admission price of $60 per guest. The following financial data are available for analysis:
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.
- B. How much profit does MusicLand earn on an average weekday?
- C. How much profit does MusicLand earn on an average weekend day?
- D. Determine the revised break-even if the daily fixed costs increased to $1,000,000.
- E. Would the theme park still remain profitable for an average weekday under the scenario in (d)?
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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
d. Determine the revised break-even if the daily fixed costs increased to $1,000,000.fill in the blank 4 guests per day
e. Would the theme park still remain profitable for an average weekday under the scenario in (d)?The average…
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
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…
MusicLand Theme Park has an average daily admission price of $60 per guest. The followingfinancial data are available for analysis:Daily operating fixed costs $750,000Variable daily operating cost per guest 24Average daily concession revenue per guest 30Average daily variable cost of concession items per guest 16Additional 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.B. How much profit does MusicLand earn on an average weekday?C. How much profit does MusicLand earn on an average weekend day?D. Determine the revised break-even if the daily fixed costs increased to $1,000,000.E. Would the theme park still remain profitable for an average weekday under the scenarioin (D)?
Chapter 20 Solutions
Financial And Managerial Accounting
Ch. 20 - Describe how total variable costs and unit...Ch. 20 - Which of the following costs would be classified...Ch. 20 - Describe how total fixed costs and unit fixed...Ch. 20 - In applying the high-low method of cost estimation...Ch. 20 - If fixed costs increase, what would be the impact...Ch. 20 - Prob. 6DQCh. 20 - Prob. 7DQCh. 20 - Both Austin Company and Hill Company had the same...Ch. 20 - Prob. 9DQCh. 20 - What does operating leverage measure, and how is...
Ch. 20 - High-low method The manufacturing costs of...Ch. 20 - Contribution margin Waite Company sells 250,000...Ch. 20 - Prob. 3BECh. 20 - Prob. 4BECh. 20 - Sales mix and break-even analysis Conley Company...Ch. 20 - Prob. 6BECh. 20 - Margin of safety Jorgensen Company has sales of...Ch. 20 - Classify Costs Following is a list of various...Ch. 20 - Identify cost graphs The following cost graphs...Ch. 20 - Identify activity bases For a major university,...Ch. 20 - Identify activity bases From the following list of...Ch. 20 - Identify fixed and variable costs Intuit Inc....Ch. 20 - Relevant range and fixed and variable costs Child...Ch. 20 - High-low method Ziegler Inc. has decided to use...Ch. 20 - High-low method for a service company Continental...Ch. 20 - Contribution margin ratio Young Company budgets...Ch. 20 - Contribution margin and contribution margin ratio...Ch. 20 - Break-even sales and sales to realize operating...Ch. 20 - Prob. 12ECh. 20 - Prob. 13ECh. 20 - Prob. 14ECh. 20 - Break-even analysis Media outlets such as ESPN and...Ch. 20 - Prob. 16ECh. 20 - Prob. 17ECh. 20 - Prob. 18ECh. 20 - Prob. 19ECh. 20 - Prob. 20ECh. 20 - Prob. 21ECh. 20 - Break-even sales and sales mix for a service...Ch. 20 - Margin of safety A. If Canace Company, with a...Ch. 20 - Prob. 24ECh. 20 - Operating leverage Beck Inc. and Bryant Inc. have...Ch. 20 - Classify costs Seymour Clothing Co. manufactures a...Ch. 20 - Prob. 2PACh. 20 - Prob. 3PACh. 20 - Prob. 4PACh. 20 - Prob. 5PACh. 20 - Contribution margin, break-even sales,...Ch. 20 - Classify costs Cromwell Furniture Company...Ch. 20 - Break-even sales under present and proposed...Ch. 20 - Prob. 3PBCh. 20 - Prob. 4PBCh. 20 - Prob. 5PBCh. 20 - Contribution margin, break-even sales,...Ch. 20 - Prob. 1MADCh. 20 - Prob. 2MADCh. 20 - Prob. 3MADCh. 20 - Break-even number of guests for a theme park...Ch. 20 - Prob. 1TIFCh. 20 - Communication Sun Airlines is a commercial airline...Ch. 20 - Profitability strategies Somerset Inc. has...Ch. 20 - Prob. 5TIFCh. 20 - Analysis of costs for a shipping department Sales...Ch. 20 - Taylor Corporation is analyzing the cost behavior...Ch. 20 - Kimber Company has the following unit costs for...Ch. 20 - Bolger and Co. manufactures large gaskets for the...Ch. 20 - Eagle Brand Inc. produces two products as follows:...
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