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

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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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
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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