Blue Mountain Resort Charges $39 for a Single Ticket for High

question 60

Essay

Blue Mountain resort charges $39 for a single ticket for high ropes and $29 for a single ticket for low ropes. If a day's total revenue from the sale of 540 passes is $18 910, how many tickets were sold for high ropes?

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Definitions:

Fixed Overhead Expensed

The practice of charging fixed overhead costs to the income statement in the period they are incurred, rather than allocating them to products.

Inventories

Properties or goods meant for selling in regular business activities, under production for sale, or as resources and supplies for consumption during the production phase or while delivering services.

Step-Down Method

An accounting method used in cost allocation that sequentially allocates service department costs to other departments, including production ones.

Support Department

A division within an organization that provides essential services or support to the primary operations or profit centers.