Mr Zoo is planning to set up a mini Zoo in Howick. The following relates to different pricing plans of visiting the zoo and costs of running the zoo. Pricing Plan 1 - $30 per person (a special pack...

Mr Zoo is planning to set up a mini Zoo in Howick.

The following relates to different pricing plans of visiting the zoo and costs of running the zoo.

Pricing Plan 1 - $30 per person (a special pack will be included)

Pricing Plan 2 - $25 per visitor (the special pack not to be included)

Variable Costs per visitor

Special Pack - $8

Zoo Consumables - $7

Zoo Expenses - $2

Total Fixed Costs - $200,000.

1. Using the CVP formula, calculate the number of units (and its dollar amount) for achieving:

- Breakeven

- A profit of $30,000 for both plans.

2.Calculate the Contribution Margin ratio for both plans.