Emma Bradford is the manager of Everest's traditional Sunday Flicks, sponsored by the Everest StudentAssociatiom The admission price is deliberately set at a very low S2. Each Sunday, a film has two showings and a maximum of 1,000 tickets can be sold for each showing. The rental of the auditorium is $316 and labor is $455, including S80 for Bradford. Bradford must pay the film distributor a guarantee, ranging from $340 to $1 , 160, 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 Leguirements_ Requirement 1. On June 3, Bradford screened The Descendants. The film grossed S3,240. The guarantee to the distributor was $760, or 40% of gross admission receipts, whichever is higher What operating income was produced for the StudentAssociation? Revenues from admissions Variable costs Contribution margin Fixed costs: Auditorium rental Labor Operating income Film 3,240 1,296 11944 Refreshments 324 162 162 s s 315 455 Total 3,564 1,458 2,106 770 1,336 Requirement 2. Recompute the results if the film grossed $1 ,600. (Round your answers to the nearest whole dollar Use parentheses or a minus sign for an operating loss.) Revenues from admissions Variable costs Contribution margin Fixed costs: Auditorium rental Labor Operating income s Film 11600 Refreshments 160 s 80 s 315 455 Total 11760 770 Requirements. 1. On June 3, Bradford screened The Descendants The film grossed S3 240. The guarantee to the distributor was S760, or 40% of gross admission receipts, whichever is higher. What operating income was produced for the Student Association? 2. Recompute the results if the film grossed $1,600 3. The "four-wall" concept is increasingly being adopted by movie producers In this plan, the movie's producer pays a guaranteed fixed rental to the theater owner for, say, a week's showing of a movie and the producer receives the ticket receipts less the fixed rental. As a theater owner, how would you evaluate a 'four-wall" offer?