Exercise 3-25 Basic Decision Analysis Using CVP (LO 3-1)

Anus Amusement Center has collected the following data for operations for the year:

Total revenues	$	2,244,000
Total fixed costs	$	777,600
Total variable costs	$	1,156,000
Total tickets sold		68,000

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? (Do not round intermediate calculations.)

d. What is the break-even point? (Do not round intermediate calculations.)

e. Anu has decided that unless the operation can earn at least $350,400 in operating profits, she will close it down. What number of tickets must be sold for Anus Amusements to make a $350,400 operating profit for the year on ticket sales? (Do not round intermediate calculations.)

What are the number of tickets?