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Volume (LO 3-1 3-26. Basic Decision Analysis Using CVP Anu's Amusement Center has collected the following data for operations for the year. S Total revenues
Volume (LO 3-1 3-26. Basic Decision Analysis Using CVP Anu's Amusement Center has collected the following data for operations for the year. S Total revenues ......... Total fixed costs .. Total variable costs ....... Total tickets sold........ $2,400,000 .. $ 656,250 $1,350,000 75,000 110 Part II Cost Analysis and Estimation 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? d. What is the break-even point? e. Anu has decided that unless the operation can earn at least $131,250 m ose it down. What number of tickets must be sold for Anu's Amusements to make a $131,250 operating profit for the year on ticket sales? unless the operation can earn at least $131,250 in operating profits, she (LO 3-1) 3-27. Basic CVP Analysis The manager of Dukey's Shoe Station estimates operating costs for the year will include $450,000 in fixed costs. Required a. Find the break-even point in sales dollars with a contribution margin ratio of 40 percent. b. Find the break-even point in sales dollars with a contribution margin ratio of 25 percent. c. Find the sales dollars required to generate a profit of $100,000 for the year assuming a contri- luution morain ratio of 40 percent
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