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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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.…
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