Anu’s Amusement Center has collected the following data for
operations for the year:
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? (Do not round intermediate calculations.)
d. What is the break-even point? (Do not round intermediate calculations.)
e. Anu has decided that unless the operation can earn at least $228,200 in operating profits, she will close it down. What number of tickets must be sold for Anu’s Amusements to make a $228,200 operating profit for the year on ticket sales? (Do not round intermediate calculations.)
| Total revenues | $ | 1,860,000 |
| Total fixed costs | $ | 674,800 |
| Total variable costs | $ | 992,000 |
| Total tickets sold | 62,000 | |
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? (Do not round intermediate calculations.)
d. What is the break-even point? (Do not round intermediate calculations.)
e. Anu has decided that unless the operation can earn at least $228,200 in operating profits, she will close it down. What number of tickets must be sold for Anu’s Amusements to make a $228,200 operating profit for the year on ticket sales? (Do not round intermediate calculations.)
