Funday Park competes with Cool World by providing a variety of rides. Funday sel

Question

Funday Park competes with Cool World by providing a variety of rides. Funday sells tickets at $100 per person as a one-day entrance fee. Variable costs are $60 per person, and fixed costs are $254,000 per month. The breakeven number of tickets is 6,350. If Funday Park expects to sell 6,500 tickets, compute the margin of safety in tickets and in sales dollars. If Funday Park expects to sell 6,500 tickets, compute the margin of safety in tickets and then in sales dollars. The margin of safety in tickets is.

Explanation / Answer

Margin of safety in tickets = 6,500 - 6,350 = 150 tickets.

150 tickets*100 per ticket = $15,000

answer: 150 tickets, $15,000

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