Wild-Water Works Water Park provides for a fun day by offering a variety of rides. Wild-Water Works Water Park sells tickets at $55 per person as a one-day entrance fee. Variable costs per person are $26 and a fixed cost amount to $233,300 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 $29. 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 towrite answer in whole units).(Fixed Costs + Target Profit) / (Contribution Margin per unit)+(Fixed Costs + Target Profit) / (Contribution Margin ratio %) =+=/1(Fixed Costs3. 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 $199,300 per month.(Use the original sales price and variable cost in determining your contribution margin per unit andcontribution ratio).+=Net Sales revenue per unit Variable costs per unit = Unit Contribution margin=(Fixed Costs + Target Profit) / (Contribution Margin per unit)+Contribution margin / Net sales revenue = Contribution margin ratio (%)Required Sales in Units4. Find the break-even point in units and in dollars using the contribution margin approach. (Reminder towrite answer in whole units).Required Sales in Dollars==Required Sales in Units+ Target Profit) / (Contribution Margin ratio %) = Required Sales in Dollars

Requirement 1Net Sales Revenue per unit-Variable cost per unit=Unit Contribution margin $…

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

See similar textbooks

Related questions

Question

Wild-Water Works Water Park provides for a fun day by offering a variety of rides. Wild-Water Works Water Park sells tickets at $55 per person as a one-day entrance fee. Variable costs per person are $26 and a fixed cost amount to $233,300 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 $29.

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)
+
(Fixed Costs + Target Profit) / (Contribution Margin ratio %) =
+
=
/
1
(Fixed Costs
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 $199,300 per month.
(Use the original sales price and variable cost in determining your contribution margin per unit and
contribution ratio).
+
=
Net Sales revenue per unit Variable costs per unit = Unit Contribution margin
=
(Fixed Costs + Target Profit) / (Contribution Margin per unit)
+
Contribution margin / Net sales revenue = Contribution margin ratio (%)
Required Sales in Units
4. Find the break-even point in units and in dollars using the contribution margin approach. (Reminder to
write answer in whole units).
Required Sales in Dollars
=
=
Required Sales in Units
+ Target Profit) / (Contribution Margin ratio %) = Required Sales in Dollars

Expert Solution

Step by step

Solved in 5 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions