A theater owner, Myra Ripkin, is trying to secure the right to exhibit the movie of Home Alone IX. She has already decided to offer a 90%, 70%, and 50% sliding scale over the three-week period. The weekly fixed "house expenses" for rent, climate control, personnel, advertising, and other items are $5,000. The "house expenses" are fixed for the entire three-week run of the movie. Allowing for lower prices for children, senior citizens, and matinees, the average price per ticket is $6.

Ripkin expects to sell 8,000 tickets during the first week, 6,000 during the second, and 4,000 during the third. And for purposes of this problem, ignore concession operations, which ordinarily add significantly to a theater's profits.)

A.What is the expected operating income for the all three weeks? And what is the breakeven volume for Ripkin?

B.Find the breakeven volume as the volume where contribution margin equals the fixed cost.