Gina Morrison is the manager of Ashford's traditional Sunday Flicks, sponsored by the Ashford Student Association....
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Gina Morrison is the manager of Ashford's traditional Sunday Flicks, sponsored by the Ashford Student Association. The admission price is deliberately set at a very low $1.25. 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 $400 and labor is $360, including $50 for Morrison. Morrison must pay the film distributor a guarantee, ranging from $330 to $1,100, 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 1. On June 3, Morrison screened The Descendants. The film grossed $1,660. The guarantee to the distributor was $840, or 40% of gross admission receipts, whichever is higher. What operating income was produced for the Student Association? Revenues from admissions Variable costs Contribution margin Fixed costs: Auditorium rental Labor Operating income 400 360 Film 1660 664 Refreshments 166 83 Total 1826 747 Gina Morrison is the manager of Ashford's traditional Sunday Flicks, sponsored by the Ashford Student Association. The admission price is deliberately set at a very low $1.25. 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 $400 and labor is $360, including $50 for Morrison. Morrison must pay the film distributor a guarantee, ranging from $330 to $1,100, 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 1. On June 3, Morrison screened The Descendants. The film grossed $1,660. The guarantee to the distributor was $840, or 40% of gross admission receipts, whichever is higher. What operating income was produced for the Student Association? Revenues from admissions Variable costs Contribution margin Fixed costs: Auditorium rental Labor Operating income 400 360 Film 1660 664 Refreshments 166 83 Total 1826 747
Expert Answer:
Related Book For
Posted Date:
Students also viewed these accounting questions
-
At an altitude of 40 km above the earths surface, the atmospheric pressure is 5.00 torr, and the surrounding temperature is 20(C. If a weather balloon is filled with 1.000 mol of Heat 760 torr and...
-
At 30 km above the Earths surface (roughly in the middle of the stratosphere), the pressure is roughly 0.013 atm and the gas density is 3.74 Ã 1023 molecules/m3. Assuming N2 is representative...
-
Many satellites orbit the earth about 1000 km above the earths surface. Geosynchronous satellites orbit at a distance of 4.22 x 10 7 m from the center of the earth. How much more energy is required...
-
What is the future value of the following cash flows, given an appropriate discount rate of 7.74% (to the nearest penny)? Year 1 Year 2 Year 3 Year 4 Year 5 $2,005 $4,054 $6,159 $8,532 $11,985
-
Kevin Sailors, the CEO of Candle Corporation, was discussing the financial statements with the company accountant. Weak cash flows had resulted in the company borrowing a lot of money. Kevin wanted...
-
How can you evaluate the effectiveness of training?
-
Malia has invested in a mutual fund. She wants to add to her investment on a regular basis and is trying to decide which purchase option to use. Her mutual fund offers a voluntary savings plan, a...
-
Entrepreneurs Consultants, a state agency, was established to provide consulting services to small businesses. It maintains only a single general fund and accounts for its activities on a modied...
-
Please help with the following question: QUESTION 1 John Martinez is assessing the performance of actively managed diversified asset portfolio. The portfolio is invested in equities, bonds, and real...
-
What four environmental conditions that increase user demand for relevant and reliable information?
-
Consider the complex [Co(en)Cl]+: dichlorodi(ethylenediamine)cobalt (III). Which of the following statements is correct for the given complex and name pair? The 'ethylenediamine' ligand should be...
-
Remark: We were originally planning to give you this in the real contest, but since we have too many awesome problems for you for tomorrow and this one is just way too easy, we decided to move it to...
-
Suppose that each kilowatt-hour (kwh) of electricity produced using natural gas results in 0.2kgs of carbon dioxide emissions. If each ton of carbon dioxide emissions results in environmental costs...
-
Identify the exact numbers. 56.00 s (a time measured by a stopwatch) 4 choices (the number of choices in this list) 3 lbs (the weight of an object measured on a scale) 2.54 cm (the number of...
-
Your boss gives you a hypothetical: Assume that the risk-free rate increases, but the market risk premium (and beta) remains constant. What impact would this have on the expected return on the common...
-
INDIVIDUAL DELIVERABLE A . While making your group decision, observe the members of the group and pay special attention to the group dynamics, conflicts that may or may not arise during the decision...
-
Blossom Company of Emporia, Kansas, spreads herbicides and applies liquid fertilizer for local farmers. On May 31, 2025, the company's Cash account per its general ledger showed a balance of...
-
Chao, Louis, and Mari, unrelated individuals, own all of the shares of Cerise Corporation. All three shareholders have been active in the management of Cerise since its inception. In the current...
-
For a rotationalvibrational spectrum of H 81 Br (B = 8.46 cm 1 ) taken at 500. K, which R-branch transition do you expect to be the most intense?
-
Explain why the electron affinity of N is negative.
-
What are the fastest time scales on which chemical reactions can be investigated? Describe three experimental techniques for investigation of chemical reactions.
-
The W-4, which shows total annual earnings and deductions for federal and state income taxes, must be completed by the employer and given to the employee by January 31. True/False
-
The general ledger accounts commonly used to record the employers Social Security, Medicare, FUTA, and SUTA taxes are classified as (a) assets. (b) liabilities. (c) expenses. (d) owners equity.
-
What information appears on Form W-2, the employee's Wage and Tax Statement?
Study smarter with the SolutionInn App