Problem 7.45 Break-Even Analysis: Profit-Volume Graph; Movie Theaters (LO 7-1,7-3, 7-4) Silver Screen Inc. owns and operates a nationwide chain of movie theaters. The 500 properties in the Silver Screen chain vary from low volume, small-town,single-screen theaters to high-volume, urban, multiscreen theaters. The firm's management is considering installing popcorn machines, which would allow the theaters to sell freshly popped corn rather than prepopped corn. This new feature would be advertised to increase patronage at the company's theaters. The fresh popcorn will be sold for $1.75 per tub. The annual rental costs and the operating costs vary with the size of the popcorn machines. The machine capacities and costs are shown below. (Ignore income taxes.) Popper Model Economy 45,000 tubs 90,000 tubs Super 140,000 tubs $ Annual capacity Costs: Annual machine rental Popcorn cost per tub other costs per tub Cost of each tub $ 11,000 0.13 8.000 0.13 1.22 8. $20,000 0.13 1.05 0.88 Problem 7-45 Part 2 2. Prepare a profit-volume graph for one theater assuming that the Super Popper is purchased. (Before plotting any points, be sure to round your calculations to the nearest thousand. Use the line tool to draw a single line (Profit). This line should only contain the Profit-volume graph Profit Dollars per year (in thousands) Break-even point Loss area Profit area www 10 20 30 40 50 60 Tubs sold per year (in thousands)