Anu\'s Amusement Center has collected the following data for operations for the

Question

Anu's Amusement Center has collected the following data for operations for the year Tolal fced costs Total variable costs Total tickets sold 637.000 1,054,000 62,000 Required: a. What is the average selling price for a ticket? per toket b. What is the average variable cost per icket? e. What is the average contribution margin per Scket? (Do net round intermediate calculations per ticket d. What is the break-even point? (Do not round intermediate calculations) what mrter of toes matbeoteANSAu mton ako a sans oo operating pom r 6 An has decided that uness the operaton can eam at least S206 Oinoperating profts, she wo cose he year on ticket sales? (De not round intermediate calculations) dow

Explanation / Answer

a Average selling price = 1922000/62000= $31 per ticket b Average variable cost = 1054000/62000= $17 per ticket c Average contribution margin = 31-17 = $14 per ticket d Break even point = Fixed costs/Average contribution margin = 637000/14= 45500 tickets e Number of tickts = (637000+266000)/14= 64500

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