Averaging costs Nuttall Entertainment Company operates a movie theater that has monthly fixed expenses of $5,000. In

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Averaging costs Nuttall Entertainment Company operates a movie theater that has monthly fixed expenses of $5,000. In addition, the company pays film distributors $1.00 per ticket sold. The following chart shows the number of tickets Nuttall expects to sell in the coming year:

July Aug. Sept. 2,000 1,600 3,200 3,400 3,200 4,200 4,700 4,000 5,000 3,100 3,000 2,600 40,000 Feb. Jan. Mar. May Apr. O

.:.

Required

Assume that Nuttall wants to earn $3.00 per movie patron. What price should it charge for a ticket in January and in September?

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Fundamental Managerial Accounting Concepts

ISBN: 978-0078110894

6th Edition

Authors: Edmonds, Tsay, olds

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Question Posted: Dec 07, 2011 03:22 AM

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Averaging costs Nuttall Entertainment Company operates a movie theater that has monthly fixed expenses of $5,000. In

Question:

July Aug. Sept. 2,000 1,600 3,200 3,400 3,200 4,200 4,700 4,000 5,000 3,100 3,000 2,600 40,000 Feb. Jan. Mar. May Apr. Oct Dec. Total June Nov.

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Nuttall should charge the same amount per ticket throughout t...View the full answer

Fundamental Managerial Accounting Concepts

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