Answer
3-18(2)
(a) Number of Tickets to Break-Even
Formula = Fixed Costs / Contribution margin per unit
Fixed Costs (given) USD 36,000
Contribution Margin (W-1) USD 100 Per Ticket
Break-even point (36,000 / 100) 360 Tickets
(b) Number of tickets to earn target profit of USD 12,000 per month
Formula = [(Fixed Costs + Target Profit) / Contribution Margin Per Unit]
[(USD 36,000 + USD 12,000) /USD 100]
480 Tickets
Work Step by Step
(W-1) Contribution Margin Per Unit
Sales price (1,300 × 10%) = 130
Variable costs = 30
Contribution margin( 130 - 30) = 100
