# For 2017, SoakNFun expects a sales mix of four individual tickets for every one family ticket. SoakNFun

## Question:

SoakNFun Swim Park sells individual and family tickets. With a ticket, each person receives a meal, three beverages, and unlimited use of the swimming pools. SoakNFun has the following ticket prices and variable costs for 2016:

SoakNFun expects to sell one individual ticket for every four family tickets. SoakNFun€™s total fixed costs are $76,000.

Requirements

1. Compute the new weighted-average contribution margin per ticket.

2. Calculate the total number of tickets SoakNFun must sell to break even.

3. Calculate the number of individual tickets and the number of family tickets the company must sell to break even.

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**

## Horngrens Financial and Managerial Accounting

**ISBN:** 978-0133866292

5th edition

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