Waterman's WaterWorld Tourist Park has collected the following data for operations for the year.Total revenuesTotal fixed costsTotal variable costsTotal tickets sold$ 2,300,000$ 671,3751,275,00050,000$Required:a. What is the average selling price for a ticket?b. What is the average variable cost per ticket?a Average selling priceb. Average variable costc. Average contribution margind. Break-even pointe. Number of ticketsc. What is the average contribution margin per ticket?Note: Do not round Intermediate calculations.d. What is the break-even point?Note: Do not round Intermediate calculations.e. Waterman's management has decided that unless the operation can earn at least $164,000 in operating profits, they will close itdown. What number of tickets must be sold for Waterman's to make a $164,000 operating profit for the year on ticket sales?Note: Do not round Intermediate calculations.per ticketper ticketper ticketticketstickets

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FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Culver World provided the following data concerning its costs of operating and the number of riders of its Scream ride and the related linear regression for selected operation months: Riders Operating costs January $2.40 $1.84 $1.94 O $2.05 2900 $8640 February March April 2800 $8510 2300 2210 May 2500 $7490 $6984 $7910 Using the high-low method, what is the unit variable cost for the Scream ride? June 2700 $8580
Use the following information to complete Short Exercises S20-10 through S20-13. Funday Park competes with Cool World by providing a variety of rides. Funday Park sells tickers at $70 per- person as a one-day entrance fee. Variable costs are $42 per person, and fixed costs are $170,800 per month Computing contribution margin per unit, breakeven point in sales units Compute the contribution margin per unit and the number of tickets Funday Park must sell to break even. Perform numerical proof to show that your answer is correct.
Lucido Products markets two computer games: Claimjumper and Makeover. A contribution format income statement for a recent month for the two games appears below. Sales Variable expenses Contribution margin Fixed expenses Net operating income Claimjumper $ 112,000 34,600 $77,400 Makeover $ 56,000 7,400 $ 48,600 Total $ 168,000 42,000 126,000 86,400 $ 39,600 Required: 1. What is the overall contribution margin (CM) ratio for the company? 2. What is the company's overall break-even point in dollar sales? 3. Prepare a contribution format income statement at the company's break-even point that shows the appropriate levels of sales for the two products. Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required 11 Required 21 Required 3 Prepare a contribution format income statement at the company's break-even point that shows the appropriate levels of sales for the two products. (Do not round intermediate calculations, Round your…
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Lucido Products markets two computer games: Claimjumper and Makeover. A contribution format income statement for a recent month for the two games appears below: Sales Variable expenses Contribution margin Fixed expenses Net operating income References Required: 1. What is the overall contribution margin (CM) ratio for the company? Ass 2. What is the company's overall break-even point in dollar sales? 3. Prepare a contribution format income statement at the company's break-even point that shows the appropriate levels of sales for the two products. complete all parts P References Sales Claimjumper $ 94,000 23,560 $ 70,440 $ 42,360 What is the overall contribution margin (CM) ratio for the company? Overal CM ratio Net operating income (loss) Makeover $ 47,000 4,640 Required 1 Required 2 What is the company's overall break-even point in dollar sales? (Do not round intermediate calculations.) Overall brouk-even point Complete this question by entering your answers in the tabs below.…
Cullumber Company makes three models of tasers. Information on the three products is given below. Sales Variable expenses Contribution margin Fixed expenses Net income (a) Net income $ (b) Shocker Net Income Tingler $300,000 $500,000 Tingler Net Income $ Total Net Income (c) Why or why not? Compute current net income for Cullumber Company. ta Net income would 151,400 148,600 $ 119,400 S $29,200 Fixed expenses consist of $298,000 of common costs allocated to the three products based on relative sales, as well as direct fixed expenses unique to each model of $30,000 (Tingler), $80,800 (Shocker), and $34,300 (Stunner). The common costs will be incurred regardless of how many models are produced. The direct fixed expenses would be eliminated if that model is phased out. James Watt, an executive with the company, feels the Stunner line should be discontinued to increase the company's net income. Shocker 197,000 303,000 229,800 $73,200 Compute net income by product line and in total for…
The background information is provided in the image attached. Solve the following: g) Briefly explain the impact of each of the following scenarios on the contribution margin per unit and thebreak-even point:(i) Sales volume increases(ii) Total fixed cost decreases(iii) Selling price per unit increases(iv) Variable cost per unit increases

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