Get Drenched Swim Park sells individual and family tickets. With a ticket, each person receives a meal, three beverages, and unlimited use of the swimming pools. Get Drenched Swim Park has the following ticket prices and variable costs for 2020: Tickets Individual Family Sales price per ticket $50 $110 Variable cost per ticekt $30 $90 Get Drenched Swim Park expects to sell 1 individual ticket for every 4 family tickets. Get Drenched Swim Park has total fixed cost of $80,000. Using the information presented for Get Drenched Swim Park complete the following: 1. Compute the weighted-average contribution margin per ticket.
Get Drenched Swim Park sells individual and family tickets. With a ticket, each person receives a meal, three beverages, and unlimited use of the swimming pools. Get Drenched Swim Park has the following ticket prices and variable costs for 2020: Tickets Individual Family Sales price per ticket $50 $110 Variable cost per ticekt $30 $90 Get Drenched Swim Park expects to sell 1 individual ticket for every 4 family tickets. Get Drenched Swim Park has total fixed cost of $80,000. Using the information presented for Get Drenched Swim Park complete the following: 1. Compute the weighted-average contribution margin per ticket.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Get Drenched Swim Park sells individual and family tickets. With a ticket, each person receives a meal, three beverages, and unlimited use of the swimming pools. Get Drenched Swim Park has the following ticket prices and variable costs for 2020:
| Tickets | Individual | Family |
|---|---|---|
| Sales price per ticket | $50 | $110 |
| Variable cost per ticekt | $30 | $90 |
Get Drenched Swim Park expects to sell 1 individual ticket for every 4 family tickets. Get Drenched Swim Park has total fixed cost of $80,000.
Using the information presented for Get Drenched Swim Park complete the following:
1. Compute the weighted-average contribution margin per ticket.
Transcribed Image Text:Sales price per unit
Variable cost per unit
Contribution margin per unit
Sales mix in units
Contribution margin
Weighted-average contribution margin per unit
Units
2. Compute the total number of tickets needed to break-even for Get Drenched Swim Park.
+
Individual Family
(Fixed Costs + Target Profit) / Contribution Margin per unit = Required Sales in Units
Family
Total
=
3. Compute the total number of individual tickets and the number of family tickets the company must sell
to break-even.
X
Ticket Type Total Ticket Sales X Percent of sales (%) = # of tickets per type
Individual
X
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