Question: Anus Amusement Center has collected the following data for operations for the year: Total revenues . . . . . . . . . .

Anu’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. Anu 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 Anu’s Amusements to make a $43,750 operating profit for the year on ticket sales?

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