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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
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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 contribution margin per patron?

a. $2.86
b. $14.00
c. $0.35
d. $26.00

User Tomasz Lewowski
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1 Answer

4 votes

Answer: b. $14.00

Step-by-step explanation:

Contribution margin = Price - Variable cost

= $40 - $26 = $14

User Armstrong
by
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