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 $75 per person as a one-day entrance fee. Variable costs per
person are $37 and fixed cost amount to $216,200 per month.
Wild-Water Works Water Park expects to sell 7,100 tickets. Find break-even first, then compute the
margin of safety in tickets and sales in dollars.
Net sales revenue per unit Variable costs per unit = Unit contribution margin
(Fixed Costs + Target Profit) / Contribution Margin per unit = Required Sales in Units
Expected Sales Break-even sales = Margin of safety in units
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Margin of safety in units X Sales price per unit = Margin of safety in dollars
Answer rating: 100% (QA)
Calculate the contribution margin per unit Contribution Margin per Unit Selling Price per Unit Va...View the full answer