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1. Compute Story Park’s contribution margin ratio. Carry your computation to

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S19-5 Computing breakeven point in sales dollars [5 min]

Refer to Short Exercise 19-4.

Requirements

1. Compute Story Park’s contribution margin ratio. Carry your computation to
two decimal places.

2. Use the contribution margin ratio CVP formula to determine the sales revenue
Story Park needs to break even.

Data from S19-4
Story Park competes with Splash World by providing a variety of rides. Story sells
tickets at $50 per person as a one-day entrance fee. Variable costs are $10 per person,
and fixed costs are $240,000 per month.

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