S20-17 (similar to) Question Help For 2019, Splashing Sun expects a sales mix of

Question

S20-17 (similar to) Question Help For 2019, Splashing Sun expects a sales mix of one individual ticket for every four family tickets. Splashing Sun's total Splashing Sun Swim Park sells individual and family tickets. With a ticket, each person receives a meal, three beverages, and unlimited use of the swimming pools. Splashing Sun has the following ticket prices and variable costs fixed costs e S40,500. for 2018: Read the requirements. EEl (Click the icon to view the data.) Requirement 1. Compute the weighted-average contribution margin per ticket. Requirements Complete the table below to calculate the weighted-average contribution margin. (Round the weighted-average contribution margin per unit to the Individual Family Total 1. Compute the weighted-average contribution margin per ticket. 2. Calculate the total number of tickets Splashing Sun must sell to break evern. 3. Calculate the number of individual tickets and the number of family tickets the Contribution margin per unit company must sell to break even. Print Done Contribution margin Data Table Weighted n margin per unit Individual Family Sale price per ticket Variable cost per ticket 20 $ 60 10 40 Choose from any list or enter any number in the input fields and then click Check A PrintDone parts

Explanation / Answer

Calculate weighted average contribution margin per unit :

2) Break even point unit = 40500/18 = 2250 units

3) Individual ticket = 2250*20% = 450 tickets

Family tickets = 2250*80% = 1800 tickets

Individual Family Tota Sale price per unit 20 60 Variable cost per unit 10 40 Contribution margin per unit 10 20 * Sales mix (1:4) 20% 80% Weighted average contribution margin per unit 2 16 18

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