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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 projected monthly income if 5,500 patrons visit the theater each month?
A) $263,500
B) $148,500
C) $249,500
D) $33,500
Answer: D
Explanation: D)
Sales $50
Less Variable costs 23
= Contribution Margin 27 × 5,500 = $148,500
Less fixed = 115,000
Operating Income $33,500
