Wild-Water Works Water Park provides for a fun day by offering a variety of rides. Wild-Water...
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Wild-Water Works Water Park provides for a fun day by offering a variety of rides. Wild-Water Works Water Park sells tickets at $57 per person as a one-day entrance fee. Variable costs per person are $26 and a fixed cost amount to $222,200 per month. (Round your answers to two decimal places when needed and use rounded answers for all future calculations). 1. Compute the new contribution margin per unit and the contribution margin ratio if Wild-Water Works Water Park cuts it ticket price to $42 per person. Net Sales revenue per unit Variable costs per unit = Unit Contribution margin Contribution margin / Net sales revenue = Contribution margin ratio (%) 2. Find the break-even point in units and in dollars using the contribution margin approach. (Reminder to write answer in whole units). (Fixed Costs + Target Profit) / (Contribution Margin per unit) = Required Sales in Units (Fixed Costs + + = + Target Profit) (Contribution Margin ratio %) = = = Required Sales in Dollars Wild-Water Works Water Park provides for a fun day by offering a variety of rides. Wild-Water Works Water Park sells tickets at $57 per person as a one-day entrance fee. Variable costs per person are $26 and a fixed cost amount to $222,200 per month. (Round your answers to two decimal places when needed and use rounded answers for all future calculations). 1. Compute the new contribution margin per unit and the contribution margin ratio if Wild-Water Works Water Park cuts it ticket price to $42 per person. Net Sales revenue per unit Variable costs per unit = Unit Contribution margin Contribution margin / Net sales revenue = Contribution margin ratio (%) 2. Find the break-even point in units and in dollars using the contribution margin approach. (Reminder to write answer in whole units). (Fixed Costs + Target Profit) / (Contribution Margin per unit) = Required Sales in Units (Fixed Costs + + = + Target Profit) (Contribution Margin ratio %) = = = Required Sales in Dollars
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Microeconomics An Intuitive Approach with Calculus
ISBN: 978-0538453257
1st edition
Authors: Thomas Nechyba
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