Gina Morrison is the manager of Ashford's traditional Sunday Flicks, sponsored by the Ashford Student Association....

 

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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

Answer rating: 100% (QA)

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