Question: Problem 2-24A (Algo) Selecting the appropriate time period for cost averaging LO 2-5 Fanning Cinemas is considering a contract to rent a movie for $2,000

Problem 2-24A (Algo) Selecting the appropriate time period for cost averaging LO 2-5

Fanning Cinemas is considering a contract to rent a movie for $2,000 per day. The contract requires a minimum one-week rental period. Estimated attendance is as follows:

Monday	Tuesday	Wednesday	Thursday	Friday	Saturday	Sunday
450	300	200	590	1,040	1,040	520

Required

A. Determine the average cost per person of the movie rental contract separately for each day.

B. Suppose that Fanning chooses to price movie tickets at cost as computed in Requirement a plus $2.30. What price would it charge per ticket on each day of the week?

C. Use weekly averaging to determine a reasonable price to charge for movie tickets.

Determine the average cost per person of the movie rental contract separately for each day. (Round your answers to 2 decimal places.)

Day	Monday	Tuesday	Wednesday	Thursday	Friday	Saturday	Sunday
Average cost per person

Suppose that Fanning chooses to price movie tickets at cost as computed in Requirement a plus $2.30. What price would it charge per ticket on each day of the week? Use weekly averaging to determine a reasonable price to charge for movie tickets. (Round your intermediate calculations and final answer to 2 decimal places.)

Day	Monday	Tuesday	Wednesday	Thursday	Friday	Saturday	Sunday
Price per ticket
Reasonable price

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