Question

CVP Analysis (20 points) XYZ operates a movie theater. A movie ticket is $14.50 per ticket, and costs nothing. On average 50% of the customers will buy a soda (S6 each, cost $1): 50% will buy food ($6 average price with a cost of $2). The fixed costs are $190,000. a. Calculate the break-even quantity and Ssales for tickets, soda and food(10 points) P. V cm mix. WACM. o. # 145000 Tickets. 14.5 14.5 14.5., 10.000 logobx145 Soda 6 05 2.5 51000 5000X630000 farl 6 2 4 0.5. 2 5.00 5000X6=30.000 BEQ-EL prve 190.000 14.5+2 5+2 - 10.000 b. The theatre wishes to make $95,000 profit. Calculate the target profit quantity and sales for tickets, soda and popcorn (10 points) TPQ FC Povc - about 190.000 " 1 2 = 15,000

Managerial accounting.

Can someone work it out so i can compare my answer?

Answer 1

Since there are three products we have to End weighted average contribution per unit. contribution margin = Sales - variable cost Sale Variable contribution Sales W ACM Price cost min Contribution & sales mix) Tickets 14.5 O 145 1 14.5 Soda 6 5 0.5 205 food 6 Q u of 2 Total 19 - Break even sales (units) = $190000 Blakenst = 10000 units Break even point in (dollary). (10000 x 14.5x1) +(10000X6X0.5) +(10000 X6X0.5) - $205000 (2) To earn a profit of s95000, The Sales should be. $95000 + 190000, 15000 units $ 19 Tickets: 4500 soda food - 3250uts. 3250 units