Wild-Water Works Water Park provides for a fun day by offering a variety of rides. Wild-Water Works Water Park sells tickets at $80 per person as a one-day entrance fee. Variable costs per person are $34 and fixed cost amount to $138,000 per month. Wild-Water Works Water Park expects to sell 7,100 tickets. Estimate the operating income if sales increase by 15%. Calculate the degree of operating leverage. (Round your answers to two decimal places when needed and use rounded answers for all future calculations.) Contribution Margin / Operating Income = Decree of Operating Leverage Percent change in Sales Revenue (%) Operating Income X X X X Degree of operating leverage Percent change in operating income (%) = = Percent change in operating income (%) Dollar change in operating income
Wild-Water Works Water Park provides for a fun day by offering a variety of rides. Wild-Water Works Water Park sells tickets at $80 per person as a one-day entrance fee. Variable costs per person are $34 and fixed cost amount to $138,000 per month. Wild-Water Works Water Park expects to sell 7,100 tickets. Estimate the operating income if sales increase by 15%. Calculate the degree of operating leverage. (Round your answers to two decimal places when needed and use rounded answers for all future calculations.) Contribution Margin / Operating Income = Decree of Operating Leverage Percent change in Sales Revenue (%) Operating Income X X X X Degree of operating leverage Percent change in operating income (%) = = Percent change in operating income (%) Dollar change in operating income
Chapter3: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 10EB: Keleher Industries manufactures pet doors and sells them directly to the consumer via their web...
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