Use the Information Below to Answer the Following Question(s)

question 58

Multiple Choice

Use the information below to answer the following question(s) .
The Burr Mystery Dinner Theatre sells tickets for dinner and a show for $50 each. The cost of providing dinner is $30 per ticket, and the fixed cost of operating the theater is $100,000 per month. The company can accommodate 15,000 patrons each month.
-What is the contribution margin per passenger at the Burr Mystery Dinner Theatre?

• A) $2.50
• B) $30.00
• C) $0.40
• D) $20.00

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Definitions:

Specialization

The process of concentrating on and becoming expert in a particular subject or skill, often leading to increased efficiency.

Long-Run Average Costs Curve

A graphical representation showing the minimum average cost at which any output level can be produced after all inputs, including capital, are adjusted.

AFC

In economic terms, typically stands for Average Fixed Cost, which is the fixed costs of production divided by the quantity of output produced.

ATC

Average total cost, which is the total cost of production divided by the quantity of output produced, encompassing both fixed and variable costs.