Requirement 1. Compute the weighted-average contribution margin per ticket. Complete the table below to calculate the weighted-average contribution margin. (Round the weighted-average contribution margin per unit to the nearest cent.) Individual Family Total Sales price per unit $25 $75 - Variable cost per unit 15 60 Contribution margin per unit 10 15 x Sales mix in units 2 3 5 Contribution margin $20 $45 $65 Weighted-average contribution margin per unit $13.00 Requirement 2. Calculate the total number of tickets Splashing Fun must sell to break even. Start by selecting the formula and entering the amounts to calculate the total number of tickets Splashing Fun must sell to break even. (Abbreviations used: Weighted avg. CM = weighted-average contribution margin. Complete all answer boxes. For items with a zero value, enter "0".) ( Fixed costs + Target profit ) / Weighted-avg. CM per unit = Required sales in units ( $26,000 + $0 ) / $13.00 = 2,000 Requirement 3. Calculate the number of individual tickets and the number of family tickets the company must sell to break even. Numbers of tickets to break even x Proportion of the sales mix = Breakeven sales of tickets Individual 2000 x = Family 2000 x = Can't figure out or know how to fine the proportion of the sales mix?
Requirement 1. Compute the weighted-average contribution margin per ticket. Complete the table below to calculate the weighted-average contribution margin. (Round the weighted-average contribution margin per unit to the nearest cent.) Individual Family Total Sales price per unit $25 $75 - Variable cost per unit 15 60 Contribution margin per unit 10 15 x Sales mix in units 2 3 5 Contribution margin $20 $45 $65 Weighted-average contribution margin per unit $13.00 Requirement 2. Calculate the total number of tickets Splashing Fun must sell to break even. Start by selecting the formula and entering the amounts to calculate the total number of tickets Splashing Fun must sell to break even. (Abbreviations used: Weighted avg. CM = weighted-average contribution margin. Complete all answer boxes. For items with a zero value, enter "0".) ( Fixed costs + Target profit ) / Weighted-avg. CM per unit = Required sales in units ( $26,000 + $0 ) / $13.00 = 2,000 Requirement 3. Calculate the number of individual tickets and the number of family tickets the company must sell to break even. Numbers of tickets to break even x Proportion of the sales mix = Breakeven sales of tickets Individual 2000 x = Family 2000 x = Can't figure out or know how to fine the proportion of the sales mix?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Requirement 1. Compute the weighted-average contribution margin per ticket.
Complete the table below to calculate the weighted-average contribution margin. (Round the weighted-average contribution margin per unit to the nearest cent.)
|
|
Individual
|
Family
|
Total
|
|
|
Sales price per unit
|
$25
|
$75
|
||
|
-
|
Variable cost per unit
|
15
|
60
|
|
|
Contribution margin per unit
|
10
|
15
|
||
|
x
|
Sales mix in units
|
2
|
3
|
5
|
|
Contribution margin
|
$20
|
$45
|
$65
|
|
|
Weighted-average contribution margin per unit
|
|
|
$13.00
|
Requirement 2. Calculate the total number of tickets
Splashing Fun
must sell to break even.Start by selecting the formula and entering the amounts to calculate the total number of tickets
Splashing Fun
must sell to break even. (Abbreviations used: Weighted avg. CM = weighted-average contribution margin. Complete all answer boxes. For items with a zero value, enter "0".)|
(
|
Fixed costs
|
+
|
Target profit
|
) /
|
Weighted-avg. CM per unit
|
=
|
Required sales in units
|
|
(
|
$26,000
|
+
|
$0
|
) /
|
$13.00
|
=
|
2,000
|
Requirement 3. Calculate the number of individual tickets and the number of family tickets the company must sell to break even.
|
|
Numbers of tickets to break even
|
x
|
Proportion of the sales mix
|
=
|
Breakeven sales of tickets
|
||
|
Individual
|
2000
|
x
|
|
=
|
|
||
|
Family
|
2000
|
x
|
|
=
|
|
Can't figure out or know how to fine the proportion of the sales mix?
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