Fill This Form To Receive Instant Help
Fill This Form To Receive Instant Help
Homework answers / question archive / LaComedia Dinner Theater sells tickets for dinner and a show for $40 each
LaComedia Dinner Theater sells tickets for dinner and a show for $40 each. The cost of providing dinner is $26 per ticket and the fixed cost of operating the theater is $100,000 per month. The company can accommodate 12,000 patrons each month. What is the projected monthly income if 10,000 patrons visit the theater each month?
A) $68,000
B) $140,000
C) $240,000
D) $40,000
Answer: D
Explanation: D)
Sales $40
Less Variable costs 26
= Contribution Margin 14 × 10,000 = $140,000
Less fixed = 100,000
Operating Income $40,000
