Fill This Form To Receive Instant Help
Fill This Form To Receive Instant Help
Homework answers / question archive / The Settler's Chuck Wagon sells tickets for dinner and a show for $50 each
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 ratio?
A) 46%
B) 185%
C) 27%
D) 54%
Answer: D
Explanation: D)
Sales $50
Less Variable costs 23
= Contribution Margin 27 Divided by $50 = 54%
