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Accounting

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Nov 24, 2024

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10/30/23, 8:14 PM Chapter 4 Post-Class Homework https://www.ameengage.com/mod/quiz/review.php?attempt=4637934&cmid=1260603&page=6 1/2 Dashboard / My courses / [Seneca 09/2023] HTM440NHB - Nardi / CHAPTER 4 - Cost-Volume-Profit Analysis / Chapter 4 Post-Class Homework Question 7 Correct Mark 4.00 out of 4.00 Take me to the text Il Garin Entertainment offers theater packages at $57 per unit. The package includes snacks, beverages and a ticket. The costs incurred by the program are as follows: Variable Costs $25 per package Fixed Expenses $12,580 Do not enter dollar signs or commas in the input boxes. a) Calculate the contribution margin per package. Round your answer to 2 decimal places Contribution margin per package: $ 32 b) Determine the break-even point in units (packages) Round your answer up to the nearest whole number. Break-even point: 394 c) If the theater can accommodate only 340 individuals, how much should Il Garin Entertainment charge per package to break-even? Assume that variable and fixed costs remain the same. Round your answer to 2 decimal places Selling Price: $ 62 d) Using the information from part (c), how much should Il Garin charge per package if they want to have an operating income of $680? Round your answer to 2 decimal places Selling Price: $ 64 Explanation a) Selling Price - Variable Costs Contribution margin per package: $32.00 b) Fixed Expenses ÷ Contribution Margin Break-even point: 394 c) (Fixed Costs ÷ Number of Seats) + Variable Costs Selling Price: $62.00 d) [(Fixed Costs + Operating Income) ÷ Number of Seats] + Variable Costs Selling Price: $64.00 Correct Marks for this submission: 4.00/4.00.
10/30/23, 8:14 PM Chapter 4 Post-Class Homework https://www.ameengage.com/mod/quiz/review.php?attempt=4637934&cmid=1260603&page=6 2/2
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