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 tickets 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. Requirement 1. On June 3, Bradford screened The Descendants. The film grossed $7,020. The guarantee to the distributor was $780, or 40% of gross admission receipts, whichever is higher. What operating income was produced for the Student Association? Film Refreshments Total Revenues from admissions Variable costs Contribution margin Fixed costs: Auditorium rental Labor Operating income