Refer to the information for Fairfield Blues presented in Exhibit 12-5, rows 1-12. Assume that you have some new information about costs and activities for next year. Namely, you learn that the cost per game should be $3,000 instead of $2,400, the cost per ticket should be $1.50 instead of $1.00, and the estimated number of tickets sold should be 200,000 instead of 204,000. Assume that all other information in rows 1-12 of Exhibit 12-5 is valid.

[CMA adapted]

= Q2oY/ Dvo'mnhe.committonte %

FC {200600 «1.12 4 Yo ae 503 Exercise 12.43 Bottleneck Identification

(Appendix A)

(LO 7)

G F Excess Average Capacity Demand (G=E-—F)

5 ?

40 iz 150 if 150 %

150 ?

1,000 ?

2 ?

Exercise 12.44 Theory of Constraints

(Appendix A)

(LO 7)

Exercise 12.45 Theory of Constraints

(LO 7)

Cost-Volume-Profit Analysis

(LO 2, 3)

eXcel Se joe 2X%7=1.40 Keoo ” a)

vo B40 (7 Problem 12.47 Multiple Products and Scenario Analysis

(LO 3, 4,5)

~2azi 504 Problem 12.48 Cost-Volume-Profit

(LO 2, 3)

eXcel mhhe.com/hilton4e Problem 12.49 Cost-Volume-Profit

(LO 2, 3)

Problem 12.50 Multiple Products

(LO 3,4)

eXcel mhhe.com/hilton4e Part4 Planning and Decision Making Required

a. Compute the new weighted-average unit contribution margin (WAUCM) considering this new information.

b. Compute the new break-even volume.

c. Compute the new target profit volume.

d. Compute the estimated operating income for next year for Fairfield Blues.