Keeping the current plan and adopting the new plan

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Consider study problem 2-48, the racetrack problem, and its current plan - contribution margin of $2.70 per customer and total fixed costs of $1,080,000. Management is considering a new plan for next year that would increase both the admission price and the purses. The admission price would be increased by $0.55, and purses would be increased by $312,000. Although they think attendance next year under the current plan and this new plan will be the same, they are uncertain exactly what it will be. At what attendance level will management be indifferent between keeping the current plan and adopting the new plan?

Reference no: EM13775062

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