Requirements. 1. On June 3, Johnson screened The Descendants. The film grossed $3,300. The guarantee to the distributor was $700, 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 $1,700. 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 vou evaluate a Print Done Maggie Johnson is the manager of Wesleyan's traditional Sunday Flicks, sponsored by the Wesleyan Student Association. The admission price is deliberately set at a very low $2. 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 $440 and labor is $390, including $90 for Johnson. Johnson must pay the film distributor a guarantee, ranging from $290 to $800, 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 2. Recompute the results if the film grossed $1,700. (Round your answers to the nearest whole dollar. Use parentheses or a minus sign for an operating loss.) Film Refreshments Total Revenues from admissions $ 1,700 $ 170 $ 1,870 Variable costs Contribution margin Fixed costs: Auditorium rental $ 440 390 830 Labor Operating income Enter any number in the edit fields and then click Check