The Burr Mystery Dinner Theater sells tickets for dinner and a show for $50 each.The cost of providing dinner is $30 per ticket,and the fixed cost of operating the theater is $100,000 per month.The company can accommodate 15,000 patrons each month.What is the contribution margin per passenger?

Question

Quizplus · Accepted Answer

The contribution margin per ticket is calculated as the selling price per ticket minus the variable cost per ticket. Here, the selling price is $50, and the variable cost (cost of providing dinner) is $30. Therefore, the contribution margin is $50 - $30 = $20.00.

The Burr Mystery Dinner Theater Sells Tickets for Dinner and a Show