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Swim Park sells individual and family tickets. With a ticket, each person receives a meal, three beverages, and unlimited use of the swimming pools. Splashing
Swim Park sells individual and family tickets. With a ticket, each person receives a meal, three beverages, and unlimited use of the swimming pools.
Splashing Sun has the following ticket prices and variable costs for 2018:
For 2019, Splashing Sun expects a sales mix of one individual ticket for every four family tickets. Splashing Sun's total fixed costs are $71,250.
Individual Family Sale price per ticket $ 40 $ 120 Variable cost per ticket 25 100 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 Contribution margin Weighted-average contribution margin per unit Requirement 2. Calculate the total number of tickets Splashing Sun must sell to break even. Start by selecting the formula and entering the amounts to calculate the total number of tickets Splashing Sun must sell to break even. (Abbreviation used: Weighted-avg. CM = weighted-average contribution margin. Complete all answer boxes. For items with a zero value, enter "O". Round your answer up to the nearest whole unit.) Required sales in units + = Requirement 3. Calculate the number of individual tickets and the number of family tickets the company must sell to break even. = Breakeven sales of tickets Individual x FamilyStep by Step Solution
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