The Settler's Chuck Wagon sells tickets for dinner and a show for $50 each

Accounting Feb 26, 2021

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 contribution margin per patron?

A) $1.85

B) $ 0.54

C) $27.00

D) $23.00

Expert Solution

Answer: C

Explanation: C)

Sales $50

Less Variable costs 23

= Contribution Margin 27

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