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5 3 of 3 Required information Problem 7-45 Break-Even Analysis; Profit-Volume Graph; Movie Theaters (LO 7-1,7-3, 7-4) Silver Screen Inc. owns and operates a nationwide
5 3 of 3 Required information Problem 7-45 Break-Even Analysis; Profit-Volume Graph; Movie Theaters (LO 7-1,7-3, 7-4) Silver Screen Inc. owns and operates a nationwide chain of movie theaters. The 500 properties in the Silver Screen chain vary from low-volume, small-town, single-screen theaters to high-volume, urban, multiscreen theaters. The firm's management is considering installing popcorn machines, which would allow the theaters to sell freshly popped corn rather than prepopped corn. This new feature would be advertised to increase patronage at the company's theaters. The fresh popcorn will be sold for $1.75 per tub. The annual rental costs and the operating costs vary with the size of the popcorn machines. The machine capacities and costs are shown below. (Ignore income taxes.) Is kipped Economy 45,000 tubs Popper Model Regular 90,000 tubs Super 140,000 tubs eBook Annual capacity Costs: Annual machine rental Popcorn cost per tub Other costs per tub Cost of each tub $ 8,000 0.13 1.22 0.08 $ 11,000 0.13 1.14 0.08 $ 20,000 0.13 1.05 0.08 ferences Problem 7-45 Part 3 3. Calculate the volume (in tubs) at which the Economy Popper and the Regular Popper earn the same profit or loss in each movie theater. (Do not round intermediate calculations.) Volume tubs
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