Individual Family Sales price per ticket $50 35 $ 150 140 Variable cost per ticket

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Use the following information to complete Short Exercises S20-16 and S20-17.

Wild Waters Swim Park sells individual and family tickets. With a ticket, each person receives a meal, three beverages, and unlimited use of the swimming pools. Wild Water's has the following ticket prices and variable costs for 2018:

Wild Waters expects to sell one individual ticket for every four family tickets. Wild Waters’s total fixed costs are $27,500.

Calculating breakeven point for two products

For 2019, Wild Waters expects a sales mix of four individual tickets for every one family ticket.

Requirements

  1. Compute the new weighted-average contribution margin per ticket.
  2. Calculate the total number of tickets Wild Waters 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.
Individual
Family
Sales price per ticket
$50
35
$ 150
140
Variable cost per ticket
Transcribed Image Text:Individual Family Sales price per ticket $50 35 $ 150 140 Variable cost per ticket
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