Tickets Today contracts with the producer of Riverdance to sell tickets online.

Question

Tickets Today contracts with the producer of Riverdance to sell tickets online. Tickets Today charges each customer a fee of $6 per ticket and receives $15 per ticket from the producer. Tickets Today does not take control of the ticket inventory. Average ticket price for the event is $150.

How much revenue should Tickets Today recognize for each Riverdance ticket sold?

A) $6 because the $15 from the producer is similar to a negative cost of goods sold

B) $150 because the $135 is cost of goods sold paid to the Riverdance producer

C) $21 because both the fee from the customer and the producer are earned

D) $156 because the $135 is cost of goods sold paid to the Riverdance producer

E) None of the above

Explanation / Answer

revenue should Tickets Today recognize for each Riverdance ticket sold :

C) $21 because both the fee from the customer and the producer are earned

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