Who Done It Mystery Theater sells tickets for dinner and a show for $60 each. The cost of providing dinner is $27 per ticket and the fixed cost of operating the theater is $110,000 per month. The company can accommodate 8000 patrons each month. What is the projected monthly income if 15,000 patrons visit the theater each month?

Question

Quizplus · Accepted Answer

First, we need to find the variable cost per ticket, which is the difference between the ticket price and the cost of providing dinner:

$60 - $27 = $33

Next, we need to determine if the theater can accommodate 15,000 patrons each month. Since the theater has a capacity of 8,000 patrons per month, it cannot accommodate 15,000 patrons. Therefore, we need to calculate the maximum number of patrons the theater can accommodate:

8000 patrons = $110,000 + ($33 x 8000)

8000 patrons = $374,000

Now, we can calculate the income from 8,000 patrons:

$60 x 8000 patrons = $480,000

Since the theater cannot accommodate 15,000 patrons, the income will be capped at $480,000. Therefore, the projected monthly income is:

$480,000

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