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Question: Anu’s Amusement Center has collected the


Anu’s Amusement Center has collected the following data for operations for the year:
Total revenues . . . . . . . . . . . . . . . . . $1,600,000
Total fixed costs . . . . . . . . . . . . . . . . . $ 437,500
Total variable costs . . . . . . . . . . . . . . $ 900,000
Total tickets sold . . . . . . . . . . . . . . . . . . 100,000

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?
d. What is the break-even point?
e. Anu has decided that unless the operation can earn at least $43,750 in operating profits, she will close it down. What number of tickets must be sold for Anu’s Amusements to make a $43,750 operating profit for the year on ticket sales?



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2.99

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