Companies can use three strategies to lower their breakeven point: 1. Increase selling price; 2. Decrease variable costs; 3. Decrease fixed costs. Thinking in terms of cost structure and breakeven point, explain how a movie theater might respond to a negative demand shock (a sudden significant drop in demand as a result of external events) such as happened after the September 11^th attack on the World Trade Center, Superstorm Sandy, etc.

• Your answer must specifically address each of the three strategies outlined above, and assess whether or not that strategy would be successful. (6 points)
  • BE SPECIFIC. You must indicate exactly how you would raise selling price or which specific variable/fixed costs you are recommending that the company decrease. While you may look at online sources to learn more about the industry, DO NOT copy information without providing proper citations. Also, you must include original information; do not rely solely on online sources.
• Finally, you must make a recommendation as to the best strategy, explaining why you chose it.