For 2015, Wet Weekend expects a sales mix of two individual tickets for every three family tickets.

Question:

For 2015, Wet Weekend expects a sales mix of two individual tickets for every three family tickets.

Wet Weekend Swim Park sells individual and family tickets. With a ticket, each person receives a meal, three beverages, and unlimited use of the swimming pools. Wet Weekend has the following ticket prices and variable costs for 2014:


For 2015, Wet Weekend expects a sales mix of two


Wet Weekend expects to sell two individual tickets for every four family tickets. We Weekend’s total fixed costs are $75,000.

Requirements
1. Compute the new weighted- average contribution margin per ticket.
2. Calculate the total number of tickets Wet Weekend must sell to break even.
3. Calculate the number of individual tickets and the number of family tickets the company must sell to breakeven.

Contribution Margin
Contribution margin is an important element of cost volume profit analysis that managers carry out to assess the maximum number of units that are required to be at the breakeven point. Contribution margin is the profit before fixed cost and taxes...
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Related Book For  book-img-for-question

Horngrens Financial and Managerial Accounting

ISBN: 978-0133255584

4th Edition

Authors: Tracie L. Nobles, Brenda L. Mattison, Ella Mae Matsumura

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