Use the following information to complete Short Exercises S20-10 through S20-13. Funday Park competes with Cool World by providing a variety of rides. Funday Park sells tickers at $70 per- person as a one-day entrance fee. Variable costs are $42 per person, and fixed costs are $170,800 per month Computing contribution margin ratio, breakeven point in sales dollars Compute Funday Park’s contribution margin ratio. Carry vow Computation to two decimal Places. Use the contribution margin ratio approach to determine the sales revenue Funday Park needs to break even.
Variance Analysis
In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.
Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
Use the following information to complete Short Exercises S20-10 through S20-13.
Funday Park competes with Cool World by providing a variety of rides. Funday Park sells tickers at $70 per- person as a one-day entrance fee. Variable costs are $42 per person, and fixed costs are $170,800 per month
Computing contribution margin ratio, breakeven point in sales dollars
Compute Funday Park’s contribution margin ratio. Carry vow Computation to two decimal Places. Use the contribution margin ratio approach to determine the sales revenue Funday Park needs to break even.
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