Atlantic Transit Company operates a bus service between two cities. The company's fixed costs are $75,000 per month. The variable cost per passenger is $25, and tickets sell for $50. Calculate the contribution margin per unit and the contribution margin ratio.
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- Jolly Travel Agency specializes in flights between Toronto and Jamaica. It books passengers on Bolton Air. Jolly's fixed costs are $25,500 per month. Bolton Air charges passengers $1,300 per round-trip ticket. Read the requirement LOADING... . Begin by selecting the formula to calculate the breakeven points. Breakeven number of units = Fixed costs ÷ Contribution margin per unit Next, select the formula to calculate the number of tickets needed to meet the target operating income. Quantity of units required to be sold = ( Fixed costs + Target operating income ) ÷ Contribution margin per unit Now complete the requirement for each of the cases. Begin with case 1. Case 1: Jolly's variable costs are $44 per ticket. Bolton Air pays Jolly 6% commission on ticket price. Jolly must sell tickets to break even and…What is the contribution margin per unit and contribution margin ratio ?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.…
- Who Done It Mystery Theater sells tickets for dinner and a show for $55 each. The cost of providing dinner is $40 per ticket and the fixed cost of operating the theater is $100,000 per month. The company can accommodate 15,000 patrons each month. What is the contribution margin ratio?Anu’s Amusement Center has collected the following data for operations for the year. Total revenues $ 2,016,000 Total fixed costs $ 694,400 Total variable costs $ 1,134,000 Total tickets sold 63,000 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 $222,600 in operating profits, she will close it down. What number of tickets must be sold for Anu’s Amusements to make a $222,600 operating profit for the year on ticket sales? (Do not round intermediate calculations.)Johnson's Plumbing's fixed costs are $700,000 and the unit contribution margin is $18. What amount of units must be sold in order to realize an operating income of $100,000?
- Atlantic Manufacturing produces and sells children’s bikes at an average price of $80. Its costs are as follows: direct materials = $15; direct labour = $7; variable overhead = $3; sales commission is 5% of price. Its fixed monthly costs are $50,000. Required: 1. Using the above cost data, set up a monthly cost equation. Y=___+___x 2. What is the company’s contribution margin percentage? (Round your answer to 2 decimal places.) Contribution Margin %Funday Park competes with Cool World by providing a variety of rides. Funday sells tickets at $85 per person as a one-day entrance fee. Variable costs are $17 per person, and fixed costs are $428,400 per month. Compute Funday Park's contribution margin ratio. Carry your computation to two decimal places. Use the contribution margin ratio approach to determine the sales revenue Funday Park needs to break even. Begin by selecting the formula labels and then enter the amounts to compute the contribution margin ratio. (Enter you answer to the nearest percent, X%.) ÷ = Contribution margin ratio ÷ = % Begin by selecting the formula and then entering the amounts to calculate the sales in dollars Funday needs to break even. (Abbreviation used: CM = contribution margin. Complete all input fields. For items with a zero value, enter "0".) ( + ) ÷ = Required sales in dollars…We Deliver operates a fleet of delivery trucks in Halifax. Analysis shows that if a truck is driven 150,000 kilometres during a year, the average operating cost is 11.9 cents ($0.119) per kilometre. If a truck is driven only 94,000 kilometres during a year, the average operating cost increases to 13.9 cents ($0.139) per kilometre. Required: 1. Using the high-low method, estimate the variable and fixed cost elements of the annual cost of truck operation. (Do not round your intermediate calculations. Round the "Variable cost per kilometer" to 3 decimal places.) High level of activity Low level of activity Change Variable cost per kilometer Fixed cost per year = Kilometers Driven 2. Express the variable and fixed costs in the form Y= a + bX. (Do not round your intermediate calculations. Round the "Variable cost per kilometer" to 3 decimal places.) Total Annual Cost Total annual cost 3. If a truck were driven 127,000 kilometres during a year, what total cost would you expect to be…
- Calculate the total fixed cost?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…calculate the total fixed cost.