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Regal Stars Company owns and operates a nationwide chain of movie theaters.The chain's 100 properties vary from low-volume, small-town, single-screen theaters to high-volume, urban, multiscreen

Regal Stars Company owns and operates a nationwide chain of movie theaters.The chain's 100 properties 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.The fresh popcorn will be sold for P35.00 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.

Standard

Super

Giant

Annual capacity40,000 tubs

80,000 tubs

120,000 tubs

Costs:Annual rentalP160,000

P220,000

P400,000

Popcorn cost per tub2.60

2.60

2.60

Other cost per tub24.40

22.80

21.00

Cost of each tub1.60

1.60

1.60

At what volume in number of tubs would the Standard Popper and the Super Popper earn the same profit or loss in each movie theater?

Group of answer choices

37,500 tubs

100,000 tubs

Cannot be determined

70,588 tubs

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