Basic Decision Analysis Using CVP Ana’s Amusement Center has collected the following data for…

Basic Decision Analysis Using CVP

Ana’s Amusement Center has collected the following data for operations for the year:

Total revenues

$800,000

Total fixed costs

$218,750

Total variable costs

$450,000

Total tickets sold

50,000

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. An 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 Ana’s Amusements to make a $43,750 operating profit t for the year on ticket sales?