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SoakNSun expects to sell one individual ticket for every three family tickets. SoakNSun's total fixed costs are $52,500. SoakNSun Swim Park sells individual and family
SoakNSun expects to sell one individual ticket for every three family tickets. SoakNSun's total fixed costs are $52,500. SoakNSun Swim Park sells individual and family tickets. With a ticket, each person receives a meal, three beverages, and unlimited use of the swimming pools. Soak Sun has the following ticket prices and variable costs for 2018: (Click the icon to view the data.) Read the requirements. III. Requirement 1. Compute the weighted-average contribution margin per ticket. Complete the table below to calculate the weighted-average contribution margin. (Round the weighted-average contribution margin per unit to the nearest cent.) Individual Family Total Sales price per unit $ 20 $ 60 10 40 Variable cost per unit Contribution margin per unit 10 20 1 Sales mix in units 3 4 $ 10 $ 60 $ 70 Contribution margin $ 17.50 Weighted average contribution margin per unit Requirement 2. Calculate the total number of tickets SoakNSun must sell to break even. = Start by selecting the formula and entering the amounts to calculate the total number of tickets SoakNSun must sell to break even. (Abbreviations used: Weighted avg. CM = weighted average contribution margin. Complete all input fields. For items with a zero value, enter "O".) Fixed costs + Target profit ) = Weighted-avg. CM per unit Required sales in units ( $ 52,500 + 0 ) = 17.50 = 3,000 Requirement 3. Calculate the number of individual tickets and the number of family tickets the company must sell to break even. Sales price per unit Proportion of the sales mix = Breakeven sales of tickets Individual = II Family = - Data Table Requirements Individual Family Sale price per ticket $ 20 $ 60 1. Compute the weighted-average contribution margin per ticket. 2. Calculate the total number of tickets SoakNSun must sell to break even. 3. Calculate the number of individual tickets and the number of family tickets the company must sell to break even. Variable cost per ticket 10 40 Print Done Print Done
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