Question
Watermans WaterWorld Tourist Park has collected the following data for operations for the year: Total revenues $ 2,000,000 Total fixed costs $ 546,875 Total variable
Watermans WaterWorld Tourist Park has collected the following data for operations for the year:
Total revenues | $ 2,000,000 |
---|---|
Total fixed costs | $ 546,875 |
Total variable costs | $ 1,125,000 |
Total tickets sold | 50,000 |
Required:
What is the average selling price for a ticket?
What is the average variable cost per ticket?
Note: Round your final answer to 2 decimal places.
What is the average contribution margin per ticket?
Note: Do not round intermediate calculations. Round your final answer to 2 decimal places.
What is the break-even point?
Note: Do not round intermediate calculations.
Waterman's management has decided that unless the operation can earn at least $140,000 in operating profits, they will close it down. What number of tickets must be sold for Waterman's to make a $140,000 operating profit for the year on ticket sales?
Note: Do not round intermediate calculations.
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