LaComedia Dinner Theater sells tickets for dinner and a show for $40 each. The c
ID: 2477227 • Letter: L
Question
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 person? $26.00 $14.00 $2.86 $0.35 Washington Bottling Company provides the following information about its single product. Targeted operating income $659.930 Selling price per unit $7.55 Variable cost per unit $5.55 Total fixed cost $112,200 What is the breakeven point in units? 50,376 8,565 56,100 329,965 Given breakeven sales in units of 34,000 and a unit contribution margin of $5, how many units must be sold to reach a target operating income of $8.000? 35,600 32,400 40,000 1,600 Barbara rsquo s Candles provides the following information about its single product. Targeted operating income $55.000 Selling price per unit $100.00 Variable cost per unit $60.00 Total fixed cost S90,000 How many units must be sold to earn the targeted operating income? 2,250 1,375 906 3,625 SLtmburger rsquo s sells three cheeseburgers for every two regular hamburgers. A cheeseburger sells for $3.30 with a variable cost of $1.00. A regular hamburger sells for $3 with a variable cost of $0.75. What is the weighted average contribution margin? $4.20 $0.42 $0.60 $2.40Explanation / Answer
19)
BEP = fixed cost / contribution
= 112200 / (7.55 - 5.55)
= 56100 units
therefore, option c is correct
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