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 ratio?

Question

Quizplus · Accepted Answer

The contribution margin per ticket is $50 (selling price) - $30 (variable cost) = $20. The contribution margin ratio is $20 / $50 = 0.40 or 40%.

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