Mandy Morrison 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 $3.25. Each Sunday, a film has two showings and a maximum of 800 tickets can be sold for each showing. The rental of the auditorium is $420 and labor is $435, including $90 for Morrison. Morrison must pay the film distributor a guarantee, ranging from $300 to $1,200, 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, Morrison screened The Descendants. The film grossed $4,740. The guarantee to the distributor was $460, or 40% of gross admission receipts, whichever is higher. What operating income was produced for the Student Association? Film Refreshments Total Revenues from admissions $ 4,740 Variable costs Contribution margin Fixed costs: Auditorium rental $ 420 435 Labor Operating income