compute the weighted average contribution margin per ticket 559346

Calculating weighted average contribution margin

Wet Weekend Swim Park sells individual and family tickets, which include a meal, three beverages, and unlimited use of the swimming pools. Wet Weekend has the following ticket prices and variable costs for 2012:

Individual

Family

Sale price per ticket

$ 30

$ 90

Variable cost per ticket

15

60

Wet Weekend expects to sell two individual tickets for every four family tickets. Wet Weekend’s total fixed costs are $75,000.

Requirements

1. Compute the weighted average contribution margin per ticket.

2. Calculate the total number of tickets Wet Weekend 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.

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