Answer:
The month operating income is projected to be $7,890,000
Explanation:
The computation of operating income for 198,000 visitors
Revenue($70*198,000) $ 13,860,000.00
Variable costs($15*198,000) ($2,970,000.00)
Contribution margin $ 10,890,000.00
Fixed costs ($3,000,000.00)
Projected operating income $7,890,000.00
The revenue is computed based on 198,000 visitors not on 230,000 visitors as it is expected that the number of visitors in the month would be 198,000
Overall Crazy Coasters Amusement Park would likely record an operating income of $7,890,000 during the month
