Mom and pop rsquo s Ice Cream Shoppe sells ice cream Cones for $5.00 per custome

Question

Mom and pop rsquo s Ice Cream Shoppe sells ice cream Cones for $5.00 per customer. Variable costs are $2.25 per cone. Fixed costs are $5.000 per month. What n the Company rsquo s contribution margin per ice cream cone? $2.75 $0.55 $1.82 $2.25 Fave Motion Pictures sells movie tickets for $10 per movie patron. Variable costs are $7.50 per movie patron and fixed costs are $50,000 per month. The company rsquo s relevant range extends to 35.000 movie patrons per month. What is Fave Motion Picture rsquo projected operating income if 25,000 movie patrons see movies during a month? $250,000 $62.500 $200.000 $12.500 Hickory Point Amusement Park sells admission tickets for $50 per person for one visit. Variable costs are $15 per visitor and fixed costs are $60,000,000 per month. The company rsquo s relevant range extends to 2,000,000 visitors per month. What is Hickory Point s projected operating income if 1,750,000 visitors come to the park during the month? $61, 250,00 $27,500,000 $87,500,000 $1, 250,000 Electric jet Skis operates a jet ski rental business. Assume the jet skis rent for $35 for 6 hours. The variable costs are $33 per 6 hour rental and its fixed costs are $80,000 each month. What is the contribution margin per 6 hour jet ski rental? $0.40 $2.50 $33.00 $22.00 Electric Jet Skis operates a jet ski rental business. Assume the jet skis rent for $55 per 6 hours. The variable costs are $33 per 6 hours rental, and its fixed costs are $30,000 each month. What is the contribution margin ratio? 22% 250% 60% 40%

Explanation / Answer

Answer:13 A)$2.75

Calculation of company's contribution margin per icecream cone:

Contribution margin=Selling Price-Variable costs

=$5.00-$2.25

=$2.75 per icecream cone

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