Wet Weekend Swim Park sells individual and family tickets, which include a meal, three beverages and unlimited use of the swimming pools. Wet Weekend has the following ticket prices and variable costs for 2016: Individual Family Sale price per ticket $30 $90 Variable cost per ticket $15 $60 Wet Weekend expects to sell two individual tickets for every four family tickets. Wet Weekend's total fixed costs are $75,000. Calculate the number of individual tickets and the number of family tickets the company must sell 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.
- Calculating weighted-average contribution margin
Wet Weekend Swim Park sells individual and family tickets, which include a meal, three beverages and unlimited use of the swimming pools. Wet Weekend has the following ticket prices and variable costs for 2016:
|
|
Individual |
Family |
|
Sale price per ticket |
$30 |
$90 |
|
Variable cost per ticket |
$15 |
$60 |
Wet Weekend expects to sell two individual tickets for every four family tickets. Wet Weekend's total fixed costs are $75,000.
Calculate the number of individual tickets and the number of family tickets the company must sell to break even.
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