Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Anus Amusement Center has collected the following data for operations for the year. Total revenues $ 2,046,000 Total fixed costs $ 777,600 Total variable costs

Anus Amusement Center has collected the following data for operations for the year.

Total revenues $ 2,046,000
Total fixed costs $ 777,600
Total variable costs $ 1,054,000
Total tickets sold 62,000

Required:

a. What is the average selling price for a ticket?

b. What is the average variable cost per ticket?

c. What is the average contribution margin per ticket? (Do not round intermediate calculations.)

d. What is the break-even point? (Do not round intermediate calculations.)

e. Anu has decided that unless the operation can earn at least $254,400 in operating profits, she will close it down. What number of tickets must be sold for Anus Amusements to make a $254,400 operating profit for the year on ticket sales? (Do not round intermediate calculations.)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Intermediate Accounting Reporting And Analysis, 2017 Update

Authors: James M. Wahlen, Jefferson P. Jones, Donald Pagach

2nd Edition

1337505625, 9781337505628

More Books

Students also viewed these Accounting questions

Question

How does selection differ from recruitment ?

Answered: 1 week ago