Wild-Water Works Water Park provides for a fun day by offering a variety of rides. Wild-Water...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Wild-Water Works Water Park provides for a fun day by offering a variety of rides. Wild-Water Works Water Park sells tickets at $57 per person as a one-day entrance fee. Variable costs per person are $26 and a fixed cost amount to $222,200 per month. (Round your answers to two decimal places when needed and use rounded answers for all future calculations). 1. Compute the new contribution margin per unit and the contribution margin ratio if Wild-Water Works Water Park cuts it ticket price to $42 per person. Net Sales revenue per unit Variable costs per unit = Unit Contribution margin Contribution margin / Net sales revenue = Contribution margin ratio (%) 2. Find the break-even point in units and in dollars using the contribution margin approach. (Reminder to write answer in whole units). (Fixed Costs + Target Profit) / (Contribution Margin per unit) = Required Sales in Units (Fixed Costs + + = + Target Profit) (Contribution Margin ratio %) = = = Required Sales in Dollars Wild-Water Works Water Park provides for a fun day by offering a variety of rides. Wild-Water Works Water Park sells tickets at $57 per person as a one-day entrance fee. Variable costs per person are $26 and a fixed cost amount to $222,200 per month. (Round your answers to two decimal places when needed and use rounded answers for all future calculations). 1. Compute the new contribution margin per unit and the contribution margin ratio if Wild-Water Works Water Park cuts it ticket price to $42 per person. Net Sales revenue per unit Variable costs per unit = Unit Contribution margin Contribution margin / Net sales revenue = Contribution margin ratio (%) 2. Find the break-even point in units and in dollars using the contribution margin approach. (Reminder to write answer in whole units). (Fixed Costs + Target Profit) / (Contribution Margin per unit) = Required Sales in Units (Fixed Costs + + = + Target Profit) (Contribution Margin ratio %) = = = Required Sales in Dollars
Expert Answer:
Answer rating: 100% (QA)
Lets calculate the new contribution margin and contribution margin ratio when WildWater Works Water ... View the full answer
Related Book For
Microeconomics An Intuitive Approach with Calculus
ISBN: 978-0538453257
1st edition
Authors: Thomas Nechyba
Posted Date:
Students also viewed these finance questions
-
Give 2 examples of what journal entries Rite-Aid would have made in the description below. From a SEC Filing describing fraudulent accounting by Rite-Aid: Rite Aid systematically inflated deductions...
-
Planning is one of the most important management functions in any business. A front office managers first step in planning should involve determine the departments goals. Planning also includes...
-
1. From a line manager: I attach a collage of job advertisements that prove my contention that we are seriously underpaying my key staff. How do you reply? 2. From the HR director to the head of...
-
After its move in 1990 to La Junta, Colorado, and its new initiatives, the DeBourgh Manufacturing Company began an upward climb of record sales. Suppose the figures shown here are the DeBourgh...
-
Briefly explain the free cash flow valuation approaches
-
Suppose that the tax rate is 30%. Suppose also that the probability of getting caught evading taxes is 10% plus an additional 2.5% for every $1,000 in tax evasion. (Hence, P = 0.1 + 0.025X, where X...
-
Prepare contribution margin income statements for service firms and merchandising firms
-
The following information is taken from the accounts of Latta Company. The entries in the T-accounts are summaries of the transactions that affected those accounts during the year. The overhead that...
-
You are the accountant of Patent L . td , and it is year end, and you have to consolidate the financial statensents companies Patience plc and Westacre L . td on 2 8 February 2 0 2 3 . "You are...
-
In order to determine if the time spent on Instagram, Facebook, Twitter, or any social media platform is related to the lack of sleep-in college students, a researcher will look at a sample of 10,000...
-
You observe quarterly returns on a non - dividend paying stock of 6 . 9 4 % , 2 . 5 7 % , 2 . 4 1 % , - 4 . 9 9 % , and - 1 . 9 7 % . What is the geometric average return for this stock, expressed as...
-
Information on four investment proposals is given below: Investment Proposal A B C Investment required Present value of cash inflows Net present value Life of the project $ (190,000) 267,400 $ 77,400...
-
ed At the beginning of Year 2, the accounting records of Grace Company included the accounts and balances shown on the first row of the table below. During Year 2, the following transactions...
-
What are the nuanced strategies and methodologies that forward-thinking organizations employ to foster a culture of continuous learning and adaptation, thereby enhancing their resilience and agility...
-
Question 3 Value of Risk Management. Suppose it is 2030, and Tesla is finally profitable. Suppose that their beta is 2.5, the risk-free rate of return is 2%, and the market rate of return is 7%....
-
In what ways do regulatory frameworks and legislative mandates serve as external pressures necessitating organizational adaptation, and how can compliance efforts be integrated seamlessly into...
-
1. Use one of the basic convergence tests to test for convergence kek k!
-
On August 31, 2012, the balances of the accounts appearing in the ledger of Wood Interiors Company, a furniture wholesaler, are as follows:Prepare the August 31, 2012, closing entries for Wood...
-
Consider again the Battle of the Sexes game described in exercise 24.4. Recall that you and your partner have to decide whether to show up at the opera or a football game for your date with both of...
-
Most of us would like to live in a world where crimes are reported and dealt with, but wed sure prefer to have others bear the burden of reporting a crime. Suppose a crime is witnessed by N people,...
-
Annuities are streams of payments that the owner of an annuity receives for some specified period of time. The holder of an annuity can sell it to someone else who then becomes the recipient of the...
-
Transaction Analysis} Aziz Company entered into the following transactions: a. Performed services on account, \(\$ 18,500\) b. Collected \(\$ 7,200\) from client related to services performed in...
-
Which people does the model show as directly in contact with Nara? Use the mathematical modeling graph showing contact tracing for students in a particular class. Hani Luka Javier Nimal Nara Loise...
-
Of the 12 people in the model, how many have a path of 2 or less from Justin? Use the mathematical modeling graph showing contact tracing for students in a particular class. Hani Luka Javier Nimal...
Study smarter with the SolutionInn App