Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Wild-Water Works Water Park provides for a fun day by offering a variety of rides. Wild-Water Works Water Park sells tickets at $75 per
Wild-Water Works Water Park provides for a fun day by offering a variety of rides. Wild-Water Works Water Park sells tickets at $75 per person as a one-day entrance fee. Variable costs per person are $37 and fixed cost amount to $216,200 per month. Wild-Water Works Water Park expects to sell 7,100 tickets. Find break-even first, then compute the margin of safety in tickets and sales in dollars. Net sales revenue per unit Variable costs per unit = Unit contribution margin (Fixed Costs + Target Profit) / Contribution Margin per unit = Required Sales in Units + = Expected Sales Break-even sales = Margin of safety in units = Submit All Parts = Margin of safety in units X Sales price per unit = Margin of safety in dollars X =
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Calculate the contribution margin per unit Contribution Margin per Unit Selling Price per Unit Va...Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started