Question
El Jardin Entertainment offers theater packages at $46 per unit. The package includes snacks, beverages and a ticket. The costs incurred by the program are
El Jardin Entertainment offers theater packages at $46 per unit. The package includes snacks, beverages and a ticket. The costs incurred by the program are as follows:
Variable Costs | $11 | per package |
Fixed Expenses | $20,640 |
Do not enter dollar signs or commas in the input boxes. a) Calculate the contribution margin per package. Round your answer to 2 decimal places Contribution margin per package: $Answer b) Determine the break-even point in units (packages) Round your answer up to the nearest whole number. Break-even point: Answer c) If the theater can accommodate only 480 individuals, how much should El Jardin Entertainment charge per package to break-even? Assume that variable and fixed costs remain the same. Round your answer to 2 decimal places Selling Price: $Answer d) Using the information from part (c), how much should El Jardin charge per package if they want to have an operating income of $960? Round your answer to 2 decimal places Selling Price: $Answer
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started