Wild-Water Works Water Park provides for a fun day by offering a variety of rides. Wild-Water Works Water Park sells tickets at $70 per person as a one-day entrance fee. Variable costs per person are $26 and a fixed cost amount to $217,700 per month.(Round your answers to two decimal places when needed and use rounded answers for all future calculations).1. Compute the new contribution margin per unit and the contribution margin ratio if Wild-Water Works Water Park increase its variable costs to $30. Net Sales revenue per unit - Variable costs per unit = Unit Contribution marginContribution margin / Net sales revenue = Contribution margin ratio (%)2. Find the break-even point in units and in dollars using the contribution margin approach. (Reminder towrite answer in whole units).(Fixed Costs + Target Profit) / (Contribution Margin per unit) = Required Sales in Units++(Fixed Costs + Target Profit) (Contribution Margin ratio %) ==Net Sales revenue per unit/-3. Find the break-even point in units and in dollars using the contribution margin approach supposing Wild-Water Works Water Park reduces is fixed cost to $201,500 per month.(Use the original sales price and variable cost in determining your contribution margin per unit andcontribution ratio).+==(Fixed Costs + Target Profit) / (Contribution Margin per unit)Variable costs per unit = Unit Contribution marginContribution margin / Net sales revenue = Contribution margin ratio (%)/4. Find the break-even point in units and in dollars using the contribution margin approach. (Reminder towrite answer in whole units).(Fixed Costs + Target Profit) (Contribution Margin ratio %)Required Sales in Dollars===Required Sales in UnitsRequired Sales in Dollars

The contribution margin is the amount of money left over after variable expenditures, whereas the…

Answered: Wild-Water Works Water Park provides…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Wild-Water Works Water Park provides for a fun day by offering a variety of rides. Wild-Water Works Water Park sells tickets at $70 per person as a one-day entrance fee. Variable costs per person are $26 and a fixed cost amount to $217,700 per month.

(Round your answers to two decimal places when needed and use rounded answers for all future calculations).

1. Compute the new contribution margin per unit and the contribution margin ratio if Wild-Water Works Water Park increase its variable costs to $30.

Net Sales revenue per unit - Variable costs per unit = Unit Contribution margin
Contribution margin / Net sales revenue = Contribution margin ratio (%)
2. Find the break-even point in units and in dollars using the contribution margin approach. (Reminder to
write answer in whole units).
(Fixed Costs + Target Profit) / (Contribution Margin per unit) = Required Sales in Units
+
+
(Fixed Costs + Target Profit) (Contribution Margin ratio %) =
=
Net Sales revenue per unit
/
-
3. Find the break-even point in units and in dollars using the contribution margin approach supposing Wild-
Water Works Water Park reduces is fixed cost to $201,500 per month.
(Use the original sales price and variable cost in determining your contribution margin per unit and
contribution ratio).
+
=
=
(Fixed Costs + Target Profit) / (Contribution Margin per unit)
Variable costs per unit = Unit Contribution margin
Contribution margin / Net sales revenue = Contribution margin ratio (%)
/
4. Find the break-even point in units and in dollars using the contribution margin approach. (Reminder to
write answer in whole units).
(Fixed Costs + Target Profit) (Contribution Margin ratio %)
Required Sales in Dollars
=
=
=
Required Sales in Units
Required Sales in Dollars

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