As manager of the theater, you have a choice:

Option 1 continue for another week with the movie Taken;

Option 2 switch to the new movie Fast & Furious.

Tickets for either movie will be $8 each. As before, the distributor will collect distribution fees of $1,000 per week and 80% of ticket sales for Taken (the old movie). However, the distributor explains that they hype of Fast & Furious is so strong that the distribution fee will be $1,000 per week and 110% of ticket sales for that movie. The owner of the theater (your boss) states that he would never pay more than the price of a ticket as a distribution fee. He also reminds you that the cleaning and maintenance costs average $1.00 per ticket sold.

After discussing the situation with other theater managers, you conclude that customers who purchase a ticket for Taken on average generate contribution margin from concession sales of $3.00. However, because Fast & Furious fans stand in line longer, they are expected to buy more snacks and generate contribution margin from concession sales of $3.50 each.

Provide a decision guide to choose between Taken and Fast & Furious. Assume that you will sell X tickets for Taken or Y tickets for Fast & Furious.