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. Number of tickets per ticket per ticket per ticket tickets tickets
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. Number of tickets per ticket per ticket per ticket tickets tickets
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. Number of tickets
per ticket
per ticket
per ticket
tickets
tickets](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F9e14e833-b473-4144-adde-e217b311654e%2F6bdd2368-ab71-4afe-8c8b-d0319df34ddf%2F48ti6ah_processed.png&w=3840&q=75)
Transcribed Image Text: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. Number of tickets
per ticket
per ticket
per ticket
tickets
tickets
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Step 1: Introducing Marginal Costing & Breakeven Point of Sales
VIEWStep 2: Computation of Average SellingPrice, Average Variable Cost & Contribution Margin Per Ticket
VIEWStep 3: Computation of Breakeven Point of Sales in Tickets
VIEWStep 4: Computation of number of tickets must be sold for Waterman's to make a $140,000 operating profit
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