Anu's Amusement Center has collected the following data for operations for the year. Total revenues Total fixed costs $2,400,000 $656,250 Total variable costs $1,350,000 Total tickets sold 75,000 a. What is the average selling price for a ticket? b. What is the average variable cost per ticket? c. What is the average contribution margin per ticket? d. What is the break-even point?

Anu's Amusement Center has collected the following data for operations for the year. Total revenues Total fixed costs $2,400,000 $656,250 Total variable costs $1,350,000 Total tickets sold 75,000 a. What is the average selling price for a ticket? b. What is the average variable cost per ticket? c. What is the average contribution margin per ticket? d. What is the break-even point?

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter3: Cost Behavior And Cost Forecasting

Section: Chapter Questions

Problem 3DQ: Suppose a company finds that shipping cost is 3,560 each month plus 6.70 per package shipped. What...

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Anu's Amusement Center has collected the following data for operations for the year. Total revenues $ 1,914,000 Total fixed costs 500,500 Total variable costs 1,188,000 Total tickets sold 66,000 Required: a. What is the average selling price for a ticket? b. What is the average variable cost per ticket? c. What is the average contribution margin per ticket? (do not round intermediate calculations.) d. What is the break-even point? (Do not round intermediate calculations.) e. Anu has decided that unless the operation can earn at least $253,000 in operating profits, she will close it down. What number of tickets must be sold for Anu's Amusements to make a $253,000 operating profit for the year on ticket sales? (do not round intermediate calculations) a. Average selling price __________ per…
Waterman's WaterWorld Tourist Park has collected the following data for operations for the year: $ 2,000,000 $ 546,875 Total revenues Total fixed costs Total variable costs Total tickets sold $ 1,125,000 50,000 Required: a. What is the average selling price for a ticket? b. What is the average variable cost per ticket? Note: Round your final answer to 2 decimal places. c. What is the average contribution margin per ticket? Note: Do not round intermediate calculations. Round your final answer to 2 decimal places. d. What is the break-even point? Note: Do not round intermediate calculations. e. Waterman's management has decided that unless the operation can earn at least $140,000 in operating profits, they will close it down. What number of tickets must be sold for Waterman's to make a $140,000 operating profit for the year on ticket sales? Note: Do not round intermediate calculations. a. Average selling price b. Average variable cost c. Average contribution margin d. Break-even point e.…
Waterman's WaterWorld Tourist Park has collected the following data for operations for the year. Total revenues Total fixed costs Total variable costs Total tickets sold $ 2,300,000 $ 671,375 1,275,000 50,000 $ Required: a. What is the average selling price for a ticket? b. What is the average variable cost per ticket? a Average selling price b. Average variable cost c. Average contribution margin d. Break-even point e. Number of tickets c. What is the average contribution margin per ticket? Note: Do not round Intermediate calculations. d. What is the break-even point? Note: Do not round Intermediate calculations. e. Waterman's management has decided that unless the operation can earn at least $164,000 in operating profits, they will close it down. What number of tickets must be sold for Waterman's to make a $164,000 operating profit for the year on ticket sales? Note: Do not round Intermediate calculations. per ticket per ticket per ticket tickets tickets
Compute the contribution margin.
Suppose a company finds that shipping cost is 3,560 each month plus 6.70 per package shipped. What is the cost formula for monthly shipping cost? Identify the independent variable, the dependent variable, the fixed cost per month, and the variable rate.
West Island distributes a single product. The companys sales and expenses for the month of June are shown. Using the information presented, answer these questions: A. What is the break-even point in units sold and dollar sales? B. What is the total contribution margin at the break-even point? C. If West Island wants to earn a profit of $21,000, how many units would they have to sell? D. Prepare a contribution margin income statement that reflects sales necessary to achieve the target profit.
A company produces televisions. The cost of producing x televisions per month is given by C(x) = 5,000 + 50x -0.25x². What is the value of the cost function when the marginal cost if $25 ?
What is the contribution margin per unit and contribution margin ratio ?
calculate the total fixed cost.
Sheridan Repairs has 200 auto-maintenance service outlets nationwide. It performs primarily two lines of service: oil changes and brake repair. Oil change-related services represent 80% of its sales and provide a contribution margin ratio of 20%. Brake repair represents 20% of its sales and provides a 40% contribution margin ratio. The company's fixed costs are $15,580,800 (that is, $77,904 per service outlet). Sales mix is determined based upon total sales dollars.
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APPLY THE CONCEPTS: Target income (sales revenue) Another useful method for figuring out the type of performance your company will need to reach a target income is by using sales revenue. Rather than using the number of units, this method uses total sales revenue. In companies for which the total set of goods produced and sold is more varied, this would be the preferred method, as opposed to a business in which only one product is sold. Assume a company has pricing and cost information as follows: Price and Cost Information Amount Selling Price per Unit $30 Variable Cost per Unit $15 Total Fixed Cost $15,000 For the upcoming period, the company wishes to generate operating income of $40,000. Given the cost and pricing structure for the company's product, how much sales revenue must it generate to attain its target income? Step 1: Calculate the contribution margin ratio: The contribution margin ratio is the contribution margin in proportion to the selling price on a per-unit basis.…