Basic Decision Analysis Using CVP Ana’s Amusement Center has…
Basic Decision Analysis Using CVP
Ana’s Amusement Center has collected the following data for operations for the year:
Total revenues
$800,000
Total fixed costs
$218,750
Total variable costs
$450,000
Total tickets sold
50,000
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?
d. What is the break-even point?
e. An has decided that unless the operation can earn at least $43,750 in operating profits, she will close it down. What number of tickets must be sold for Ana’s Amusements to make a $43,750 operating profit t for the year on ticket sales?
