Who Done It Mystery Theater sells tickets for dinner and a show for $30 each. The cost of providing dinner is $26 per ticket and the fixed cost of operating the theater is $120,000 per month. The company can accommodate 13,000 patrons each month. What is the contribution margin per patron?

Question

Quizplus · Accepted Answer

The contribution margin per patron is calculated by subtracting the variable cost per unit (cost of providing dinner, $26) from the selling price per unit ($30). Thus, $30 - $26 = $4.

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