Ellie Melvin is the manager of Stanford's traditional Sunday Flicks, sponsored by the Stanford Student Association. The admission price is deliberately set at a very low $$3\mathrm{.}5.$ Each Sunday, a fim has two showings and a maximum of $1,600$ tickets can be soid for each showing. The rental of the auditorium is $$280$ and labor is $$400.$ inciuding $$100$ for Melvin Melvin must pay the film distributor a guarantee, ranging from $$280$ to $$1,000,$ or $40\%$ of gross admission receipts, whichever is higher. Before and during the show, she sells refreshments; these sales average $10\%$ of gross admission receipts and yield a contribution rmargin of $50\%.$

Read the requirements.

Requirement $1.$ On June $3.$ Melvin screened The Descendants The film grossed $$10,780.$ The guarantee to the distributor was $$420$ or $40$ s of grass admission receipts, whichever is higher. What operating income was praduced for the Student Association?

Revenues from admissions

Variable costs

Contriburion margin

Fixed costs:

Auditarim isential

Lati