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Emma Bradford is the manager of Zerek's traditional Sunday Flicks, sponsored by the Zerek Student Association. The admission price is deliberately set at a very
Emma Bradford is the manager of Zerek's traditional Sunday Flicks, sponsored by the Zerek Student Association. The admission price is deliberately set at a very low $3.25. Each Sunday, a film has two showings and a maximum of 1,200 ickets can be sold for each showing. The rental of the auditorium is $315 and labor is $480, including $105 for Bradford. Bradford must pay the film distributor a guarantee, ranging from $340 to $900, 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 margin of 50%. Read the requirements. 480 795 Labor $ 3,768 Operating income Requirement 2. Recompute the results if the film grossed $2,000. (Round your answers to the nearest whole dollar. Use Darentheses or a minus sign for an operating loss.) Film Refreshments Total Revenues from admissions Variable costs Contribution margin Fixed costs: Auditorium rental Labor Operating income nter any number in the edit fields and then click Check
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