Wyoming Waters Swim Park sells individual and family tickets. With a ticket, each person receives a meal, three beverages, and unlimited use of the swimming pools. Wyoming Waters has the following ticket prices and variable costs for the year: Individual Family Sale price per ticket $35 $105 Variable cost per ticket 25 100 Wyoming Waters expects to sell one individual ticket for every three family tickets. Wyoming Waters' total fixed costs are $25,000.
Wyoming Waters Swim Park sells individual and family tickets. With a ticket, each person receives a meal, three beverages, and unlimited use of the swimming pools. Wyoming Waters has the following ticket prices and variable costs for the year: Individual Family Sale price per ticket $35 $105 Variable cost per ticket 25 100 Wyoming Waters expects to sell one individual ticket for every three family tickets. Wyoming Waters' total fixed costs are $25,000.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Wyoming Waters Swim Park sells individual and family tickets. With a ticket, each person receives a meal, three beverages, and unlimited use of the swimming pools.
Wyoming Waters has the following ticket prices and variable costs for the year:
Individual
Family
Sale price per ticket
$35
$105
Variable cost per ticket
25
100
Wyoming Waters expects to sell one individual ticket for every three family tickets. Wyoming Waters' total fixed costs are $25,000.
Requirement 2. Calculate the total number of tickets
Wyoming Waters must sell to break even.
Start by selecting the formula and entering the amounts to calculate the total number of tickets Wyoming Waters must sell to break even. (Abbreviations used: Weighted avg. CM = weighted-average contribution margin. Complete all input fields. For items with a zero value, enter "0".)
(Fixed costs + Target profit) ÷ Weighted-avg. CM per unit = Required sales in units
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Requirement 3. Calculate the number of individual tickets and the number of family tickets the company must sell to break even.
Numbers of tickets to break even × Proportion of the sales mix = Breakeven sales of tickets?
Individual: (__×__) =
Family: (__×__) =?
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