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Volume (LO 3-1 3-26. Basic Decision Analysis Using CVP Anus Amusement Center has collected the following data for operations

110 Part II Cost Analysis and Estimation Required a. What is the average selling price for a ticket? b. What is the average v

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Answer #1

Ans. a Average selling price is

Total Revenue / No of Ticket sold

2400000/75000 = $ 32

Ans b Average variable cost

Total Variable cost / No. of Ticket sold

1350000 / 75000 = $ 18

Ans c Average contribution margin per ticket

Per Ticket Revenue $ 32 Less Per Ticket Variable cost $ 18 = $ 14 is Per Ticket Margin

Ans d Break even Point

BEP ticket  = Fixed Cost / per ticket margin

656250 / 14 = 46875 Ticket

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