Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Waterman's WaterWorld Tourist Park has collected the following data for operations for the year: Total revenues Total fixed costs $ 2,750,000 $ 875,000 $1,500,000

Waterman's WaterWorld Tourist Park has collected the following data for operations for the year: Total revenues Total fixed costs $ 2,750,000 $ 875,000 $1,500,000 50,000 Total variable costs Total tickets sold 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? Note: Do not round intermediate calculations. d. What is the break-even point? Note: Do not round intermediate calculations. e. Waterman's management has decided that unless the operation can earn at least $200,000 in operating profits, they will close it down. What number of tickets must be sold for Waterman's to make a $200,000 operating profit for the year on ticket sales? Note: Do not round intermediate calculations.

Step by Step Solution

3.41 Rating (160 Votes )

There are 3 Steps involved in it

Step: 1

aAverage selling price per ticket Total revenue Total tickets sold 2750000 500... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Fundamentals of Cost Accounting

Authors: William Lanen, Shannon Anderson, Michael Maher

3rd Edition

9780078025525, 9780077517359, 77517350, 978-0077398194

More Books

Students also viewed these Accounting questions

Question

19. What does fMRI measure?

Answered: 1 week ago