The Settler's Chuck Wagon sells tickets for dinner and a show for $50 each.The cost of providing dinner is $23 per ticket and the fixed cost of operating the theater is $115,000 per month.The company can accommodate 13,500 patrons each month.What is the projected monthly income if 5,500 patrons visit the theater each month?

Question

Quizplus · Accepted Answer

D)
Sales $50
Less Variable costs 23
= Contribution Margin 27 × 5,500 = $148,500
Less fixed = 115,000
Operating Income $33,500

The Settler's Chuck Wagon Sells Tickets for Dinner and a Show