ANSWER ALL 3 QUESTIONS !!!

24.

Thrills Amusement Park provides a variety of attractions. Thrills sells tickets at $50 per person as a one-day entrance fee. Variable costs are $28 per person, and fixed costs are $178,800 per month.

Assume that Thrills reduces fixed costs from $178,800 per month to $166,500 per month. Compute the new breakeven point in tickets and in sales dollars.

		$376,445
		$378,450
		$411,350
		$395,200

22.

Which of the following statements is true if total fixed costs decrease while the sales price per unit and variable cost per unit remain constant?

		The contribution margin increases.
		The breakeven point increases.
		The contribution margin decreases.
		The breakeven point decreases.

14.

Carolina Timber, Inc. produces flooring material. The monthly fixed costs are $10,000 per month. The unit sales price is $75, and variable cost per unit is $35. How many units should Carolina sell in order to earn $10,000 as operating income?

Answer: Required sales in units = (Fixed costs + Target profit) / Contribution margin per unit

Unit contribution margin = Net sales revenue per unit - Variable costs per unit

Unit contribution margin = $75 - $35 = $40

		550 Units
		500 units
		1200 units
		400 units