Madison Johnson is the manager of Everest's traditional Sunday Flicks, sponsored by the Everest Student Association. The admission price is deliberately set at a very low $1.5. Each Sunday, a film has two showings and a maximum of 1,200 tickets car be sold for each showing. The rental of the auditorium is $430 and labor is $360, including $105 for Johnson. Johnson must pay the film distributor a guarantee, ranging from $370 to $1,050, or 40% of gross admission receipts, whichever is higher. Before an 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, Johnson screened The Descendants. The film grossed $3,180. The guarantee to the distributor was $420, or 40% of gross admission receipts, whichever is higher. What operating income was produced for the Student Association Film Refreshments Total Revenues from admissions $ 3,180 Variable costs Contribution margin Fixed costs: Auditorium rental Labor Operating income