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

Question

Sillyday Park competes with Cool World by providing a variety of rides. Sillyday sells tickets at 5100 per person as a one-day entrance fee. Variable costs are S60 per person, and fixed costs are $254,000 per month. The breakeven number of tickets is 6,350. If Sillyday Park expects to sell 6.525 tickets, compute the margin of safety in tickets and in sales dollars. Begin by selecting the fomula labels and then entering the amounts to compute the margin of safety in units Margin of safety in units Begin by selecting the fomula labels and then entering the amounts to compute the margin of safety in units Margin of safety in dollars

Explanation / Answer

Actual expected sales-Break even sales=Margin of safety in units 6525-6350= 175 Margin of safety in unitsXSelling price per ticket =Margin of safety in dollars 175X100 = $17500

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