Question
Si Amigo Entertainment offers theater packages at $58 per unit. The package includes snacks, beverages and a ticket. The costs incurred by the program are
Si Amigo Entertainment offers theater packages at $58 per unit. The package includes snacks, beverages and a ticket. The costs incurred by the program are as follows:
Variable Costs | $25 | per package |
Fixed Expenses | $22,000 |
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 (I know this is $33)
b) Determine the break-even point in units (packages) Round your answer to the nearest whole number. (I know this is 667)
c) If the theater can accommodate only 510 individuals, how much should Si Amigo 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: $
d) Using the information from part (c), how much should Si Amigo charge per package if they want to have an operating income of $1,000? Round your answer to 2 decimal places Selling Price: $
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