You want to open a movie theater and to figure out profitability, you must make a flexible budget. Assumptions Fixed Costs ? Wages:??$30,000 ? Rent:??$20,000 ? Insurance:?$2,000 Variable Costs For variable costs, the assumption is that you will sell popcorn, soda, and candy on a percentage of customers. ? Popcorn:?0.25/pp ? Soda:??0.10/pp ? Candy:??0.50 Cost Per Ticket:?$10.00 make a flexible budget that provides profit/loss for customers at the following different levels: a. 10,000 customers b. 15,000 customers c. 20,000 customers Please provide a screenshot of your analysis or attach the Excel spreadsheet showing your work.

Fixed Costs vs. Variable Costs Fixed Costs Does not change based on activity Variable Costs Changes based on activity Movie Theater Fixed Costs Variable Costs Wages 30,000 Popcorn 0.25 Rent 20,000 Soda 0.1 Insurance 2,000 Candy 0.5 Customers Cost per ticket $10 10,000 15,000 20,000 Revenue Fixed Costs Wages 30,000 Rent 20,000 Insurance 2,000 Variable Costs Popcorn 0.25 Soda 0.1 Candy 0.5 Total Expenses Revenue - Expenses (Profit) 0 0