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: Total revenues Total fixed costs Total variable costs Total tickets sold $ 1,972,000 $ 553,200 $ 1,156,000 68,000 Required: a. What is the average selling price for a ticket? Average selling price per ticket b. What is the average variable cost per ticket? Average variable cost per ticket c. What is the average contribution margin per ticket? (Do not round intermediate calculations.) Average contribution margin per ticket d. What is the break-even point? (Do not round intermediate calculations.) Break-even point tickets e. Anu has decided that unless the operation can earn at least $292,800 in operating profits, she will close it down. What number of tickets must be sold for Anu's Amusements to make a $292,800 operating profit for the year on ticket sales? (Do not round intermediate calculations.) Number of tickets

Explanation / Answer

a Average selling price=1972000/68000= $29 b Average variable cost=1156000/68000= $17 c Average contribution margin per unit=29-17=$12 d Break-even point=553200/12= 46100 e Number of tickets=(292800+553200)/12= 70500

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