Question
Baird Cinemas is considering a contract to rent a movie for $1,900 per day. The contract requires a minimum one-week rental period. Estimated attendance is
Baird Cinemas is considering a contract to rent a movie for $1,900 per day. The contract requires a minimum one-week rental period. Estimated attendance is as follows:
| Monday | Tuesday | Wednesday | Thursday | Friday | Saturday | Sunday | |||||||
| 500 | 340 | 240 | 580 | 1,010 | 1,010 | 460 | |||||||
Required
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Determine the average cost per person of the movie rental contract separately for each day.
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Suppose that Baird chooses to price movie tickets at cost as computed in Requirement a plus $2.30. What price would it charge per ticket on each day of the week?
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Use weekly averaging to determine a reasonable price to charge for movie tickets.
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Financial Accounting
Authors: Robert F. Meigs, Jan R. Williams, Mark S. Bettner, Susan F. Haka, Sue Haka
11th Edition
0072516682, 978-0072516685
