Question: Compute the contribution margin per unit and the number of tickets Story Park must sell to break even. Perform a numerical proof to show that

Compute the contribution margin per unit and the number of tickets Story Park must sell to break even. Perform a numerical proof to show that your answer is correct.

Story Park competes with Splash World by providing a variety of rides. Story Park sells tickets at $ 50 per person as a one-day entrance fee. Variable costs are $ 10 per person, and fixed costs are $ 240,000 per month.


Step by Step Solution

3.53 Rating (160 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock

Unit contribution margin Net sales revenue per unit Variable costs per unit 50 per ticket 10 per t... View full answer

blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Document Format (1 attachment)

Word file Icon

389-B-M-A-C-V-P (1865).docx

120 KBs Word File

Students Have Also Explored These Related Managerial Accounting Questions!