Question
A local movie theater owner explains to you that ticket sales on weekends and evenings are strong, but attendance during the weekdays, Monday through Thursday,
A local movie theater owner explains to you that ticket sales on weekends and evenings are strong, but attendance during the weekdays, Monday through Thursday, is poor.The owner proposes to offer a contract to the local grade school to show educational materials at the theater for a set charge per student during school hours.The owner asks you to put together a CVP (cost-volume-profit) analysis listing the cost and sales projections for the proposal.The owner must propose to the school's administration a charge per child.At a minimum, the charge per child needs to be sufficient for the theater to break even.
If you were to put two separate lists of questions together that would enable you to do a reliable CVP analysis of this situation, what would those question be; with one list to be answered by the school's administration and the other by the owner of the movie theater?
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