Question
Il Garin Entertainment offers theater packages at $57 per unit. The package includes snacks, beverages and a ticket. The costs incurred by the program are
Il Garin Entertainment offers theater packages at $57 per unit. The package includes snacks, beverages and a ticket. The costs incurred by the program are as follows:
Variable Costs$16per packageFixed Expenses$23,460
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 460 individuals, how much should Il Garin 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 Il Garin charge per package if they want to have an operating income of $920?
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