2 of 5 (1 complete) P2-51 (similar to) HW Score: 20%, 1 of 5 pts Question Help Sophie Whitmore is the manager of Strayer's traditional Sunday Flicks, sponsored by the Strayer Student Association. The admission price is deliberately sat at a very low $2.5. Each Sunday, a film has two showings and a maximum of 800 tickets can be sold for each showing. The rental of the auditorium is $280 and labor is $470, including $110 for Whitmore. Whitmore must pay the film distributor a guarantee, ranging from $250 to $850, or 40% of gross admission receipts, whichever is higher. Before and during the show, she sells refreshments, these sales average 10% of gross admission receipts and yield a contribution margin of 50%. Read the requirements. Requirement 1. On June 3, Whitmore screened The Descendants. The film grossed $3,540. The guarantee to the distributor was 5460, or 40% of gross admission receipts, whichever is higher. What operating income was produced for the Student Association? Film Refreshments Total Revenues from admissions Variable costs Contribution margin Fixed costs: Auditorium rental Labor Operating income Enter any number in the edit fields and then click Check Answer Check Answer Clear All 2 parts remaining Student Association. The admission price is delit Nys and a maximum of 800 tickets can be sold for each showing. The rental of the auditoriu cluding $110 for Whitmore. Whitmore must pay the film distributor a guarantee, ranging from $250 to $850, or 40% of gross an s higher. Before and during the show, she sells refreshments, these sales average 10% of gross admission receipts and yield of 50%. nts. June 3, WH whichever i i Requirements. was $460, or 40% of missions 1. On June 3, Whitmore screened The Descendants. The film grossed $3,540. The guarantee to the distributor was $460, or 40% of gross admission receipts, whichever is higher. What operating income was produced for the Student Association? 2. Recompute the results if the film grossed $1,800. 3. The "four-wall" concept is increasingly being adopted by movie producers. In this plan, the movie's producer pays a guaranteed fixed rental to the theater owner for, say, a week's showing of a movie and the producer receives the ticket receipts less the fixed rental. As a theater owner, how would you evaluate a "four-wall" offer? al Print Done in the edit fields and then click Check