Carnival World complete with Circus Time by providing a variety of carnival rides for children and...
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Carnival World complete with Circus Time by providing a variety of carnival rides for children and adults. Carnival World sells tickets for $70 per person for a one-day pass. Variable costs are $42 per person and fixed costs are $170,800 per month. 1. Compute the contribution margin per unit and the number of tickets that Carnival World must sell to breaketen. (7 points) 70-42 28 cm/unit 170, 800 le.100 unit breakwen point 28 2. Compute Carnival World's contribution margin ratio. Carry your computation to two decimal points. (7 points) 3. Compute the number of tickets that must be sold to make a $150,000 profit. Round to the nearest whole ticket (7 points) 4. Prepare a contribution margin income statement at the $150,000 profit target. (7 points) Carnival World complete with Circus Time by providing a variety of carnival rides for children and adults. Carnival World sells tickets for $70 per person for a one-day pass. Variable costs are $42 per person and fixed costs are $170,800 per month. 1. Compute the contribution margin per unit and the number of tickets that Carnival World must sell to breaketen. (7 points) 70-42 28 cm/unit 170, 800 le.100 unit breakwen point 28 2. Compute Carnival World's contribution margin ratio. Carry your computation to two decimal points. (7 points) 3. Compute the number of tickets that must be sold to make a $150,000 profit. Round to the nearest whole ticket (7 points) 4. Prepare a contribution margin income statement at the $150,000 profit target. (7 points)
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Answer rating: 100% (QA)
Answer 1 Contribution Margin per person Selling Price per person Variable Cost p... View the full answer
Related Book For
Cost Accounting Foundations and Evolutions
ISBN: 978-1111626822
8th Edition
Authors: Michael R. Kinney, Cecily A. Raiborn
Posted Date:
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