Question
EX 3-26 Anus Amusement Center has collected the following data for operations for the year. Total revenues $ 1,891,000 Total fixed costs $ 738,000 Total
EX 3-26
Anus Amusement Center has collected the following data for operations for the year.
| Total revenues | $ | 1,891,000 |
| Total fixed costs | $ | 738,000 |
| Total variable costs | $ | 976,000 |
| Total tickets sold | 61,000 | |
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 $214,500 in operating profits, she will close it down. What number of tickets must be sold for Anus Amusements to make a $214,500 operating profit for the year on ticket sales?
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Interpreting and Analyzing Financial Statements
Authors: Karen P. Schoenebeck, Mark P. Holtzman
6th edition
132746247, 978-0132746243
