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
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
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