Who Done It Mystery Theater sells tickets for dinner and a show for $55 each. The cost of providing dinner is $21 per ticket and the fixed cost of operating the theater is $60,000 per month. The company can accommodate 15,000 patrons each month. What is the contribution margin ratio?

Question

Quizplus · Accepted Answer

The contribution margin ratio is calculated as (Selling Price per Unit - Variable Cost per Unit) / Selling Price per Unit. Here, it's ($55 - $21) / $55 = $34 / $55 = 0.618 or 61.8%, which rounds to 62.00%.

Who Done It Mystery Theater Sells Tickets for Dinner and a Show