Trinkle Cinemas is considering a contract to rent a movie for $1,800 per day. The contract requires
Question:
Trinkle Cinemas is considering a contract to rent a movie for $1,800 per day. The contract requires a minimum one-week rental period. Estimated attendance is as follows:
.:.
Required
a. Determine the average cost per person of the movie rental contract separately for each day.
b. Suppose that Trinkle chooses to price movie tickets at cost as computed in Requirement a plus $2.50. 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.
d. Comment on why weekly averaging may be more useful to business managers than daily averaging.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
a Day M Tu W Th F Sat Sun Total cost a 1800 1800 1800 1800 1800 1800 1800 No people b 450 300 200 55...View the full answer
Answered By
Brown Arianne
Detail-oriented professional tutor with a solid 10 years of experience instilling confidence in high school and college students. Dedicated to empowering all students with constructive feedback and practical test-taking strategies. Effective educator and team player whether working in a school, university, or private provider setting. Active listener committed to helping students overcome academic challenges to reach personal goals.
2+ Reviews
10+ Question Solved
Related Book For 
Fundamental Managerial Accounting Concepts
ISBN: 978-0078110894
6th Edition
Authors: Edmonds, Tsay, olds
Question Posted:
