Question: Mid Atlantic Cinema Inc runs a chain of movie theaters in

Mid-Atlantic Cinema, Inc., runs a chain of movie theaters in the east-central states and has enjoyed great success with a Tuesday Night at the Movies promotion. By offering half off its regular $9 admission price, average nightly attendance has risen from 500 to 1,500 persons. Popcorn and other concession revenues tied to attendance have also risen dramatically. Historically, Mid-Atlantic has found that 50% of all moviegoers buy a $5 cup of buttered popcorn. Eighty percent of these popcorn buyers, plus 40% of the moviegoers that do not buy popcorn, each spend an average of $4 on soda and other concessions.
A. Write an expression describing total revenue from tickets plus popcorn plus other concessions.
B. Forecast total revenues for both regular and special Tuesday night pricing.
C. Forecast the total profit contribution earned for the regular and special Tuesday night pricing strategies if the profit contribution is 30% on movie ticket revenues and 80% on popcorn and other concession revenues.

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  • CreatedFebruary 13, 2015
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