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An amusement park faces large fixed costs of $500,000 per month and low average variable costs of $10 per visitor

Economics

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An amusement park faces large fixed costs of $500,000 per month and low average variable costs of $10 per visitor. It charges all visitors a flat entry fee of $50 for unlimited rides. 9/26/2020 11:08:39 AM-221621K-94.59.128.185 a. What is the breakeven point for this park? b. The park currently has 42,000 visitors a month and proposes to raise its entry fee to $60 per person in order to cover the cost of a new Harry Potter-themed ride. What is the new breakeven point if the variable cost increases to $15 per visitor? c. If the park now receives 25,000 visitors a month because of the increase in entrance fee in Part (b), will the park still be profitable?