Sillytime Park competes with Slide World by providing a variety of rides. Sillyt

Question

Sillytime Park competes with Slide World by providing a variety of rides. Sillytime sells tickets at $130 per person as a one-day entrance fee. Variable costs are $13 per person, and fixed costs are $760,500 per month. Requirement 1. Compute the contribution margin per unit and the number of tickets Sillytime Park must sell to break even. Perform a numerical proof to show that your answer is correct. Begin by selecting the formula labels and then entering the amounts to compute the contribution margin per unit. Begin by selecting the formula labels and then entering the amounts to compute the number of tickets Sillytime must sell to break even.

Explanation / Answer

Sales Price = $ 130

Varaible Cost = $ 13

Contribution margin per unit = 130-13 = $ 117

Fixed Cost = $ 760,500,

Breakeven Units = 760500/115 = 6,500

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