A downtown bar hosts a live music event in order to increase sales. When analysing the sales and costs associated with the event the owner creates the following table Contractor costs Regular costs Sales Hire pop band $200 Cost to create each drink $2.74 Selling price for each drink Selling price for each ticket $200 Employee wages $560.50 Hire rock band Cleaning costs $323 b) What is the contribution margin for a ticket sale? Contribution margin for a ticket sale: 0.00 You may ignore all costs not mentioned above (for instance the cost of creating a ticket). All your answers should be rounded to the nearest cent a) What is the contribution margin for a drink sale? Contribution margin for a drink sale: 0.00 c) What is the total of the fixed costs? Total fixed costs: 0.00 A d) What is the total contribution margin for drinks sales? Total contribution margin for drinks sales: 0.00 e) What is the total contribution margin for ticket sales? Total contribution margin for ticket sales: 0.00 Number of drinks sold Number of tickets sold $10.90 $25 60 43
A downtown bar hosts a live music event in order to increase sales. When analysing the sales and costs associated with the event the owner creates the following table Contractor costs Regular costs Sales Hire pop band $200 Cost to create each drink $2.74 Selling price for each drink Selling price for each ticket $200 Employee wages $560.50 Hire rock band Cleaning costs $323 b) What is the contribution margin for a ticket sale? Contribution margin for a ticket sale: 0.00 You may ignore all costs not mentioned above (for instance the cost of creating a ticket). All your answers should be rounded to the nearest cent a) What is the contribution margin for a drink sale? Contribution margin for a drink sale: 0.00 c) What is the total of the fixed costs? Total fixed costs: 0.00 A d) What is the total contribution margin for drinks sales? Total contribution margin for drinks sales: 0.00 e) What is the total contribution margin for ticket sales? Total contribution margin for ticket sales: 0.00 Number of drinks sold Number of tickets sold $10.90 $25 60 43
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question

Transcribed Image Text:A downtown bar hosts a live music event in order to increase sales When analysing the sales and costs associated with the event the owner creates the following table
Contractor costs
Regular costs
Sales
$200 Cost to create each drink
Hire pop band
Hire rock band $200
Cleaning costs $323
$2.74 Selling price for each drink
Selling price for each ticket
Number of drinks sold
Number of tickets sold
Employee wages $560.50
You may ignore all costs not mentioned above (for instance the cost of creating a ticket). All your answers should be rounded to the nearest cent
a) What is the contribution margin for a drink sale?
Contribution margin for a drink sale: 0.00
b) What is the contribution margin for a ticket sale?
Contribution margin for a ticket sale: 0.00
c) What is the total of the fixed costs?
Total fixed costs: 0.00
A
d) What is the total contribution margin for drinks sales?
Total contribution margin for drinks sales: 0.00
e) What is the total contribution margin for ticket sales?
Total contribution margin for ticket sales: 0.00
$10.90
$25
60
43
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