The manager at the Uviewum Classic Cinema is concerned about the impact of the internet on movie attendance. They have hired you to determine the number of movie goers that must view the movie to break even on a film. Each film is played for one month at this theater. When a film is rented Uviewem must pay a $7,000 fee plus 5% of the ticket sales. The admissions price to the movie is $12.00 per person. The mall rents the space to the theater for $3,000 per month. The theater pays a manager/ticket taker $3,200 per month and the concessions workers are paid $ 1,800 per month. Assume that each moviegoer spends $7.00 on concession products and that the cost of the items consumed is $3.00. Compute the number of paying attendees (our internal control is excellent and there are no freebies) that must view the movie during the month in order to breakeven. a) List and total the fixed costs associated with showing a film at this theater? b) List and total the variable costs associated with each ticket sold? c)What is the contribution margin per ticket sold? d) Compute the number of paying attendees (our internal control is excellent and there are no freebies) that must view the movie during the month in order to breakeven.
The manager at the Uviewum Classic Cinema is concerned about the impact of the internet on movie attendance. They have hired you to determine the number of movie goers that must view the movie to break even on a film. Each film is played for one month at this theater. When a film is rented Uviewem must pay a $7,000 fee plus 5% of the ticket sales. The admissions price to the movie is $12.00 per person. The mall rents the space to the theater for $3,000 per month. The theater pays a manager/ticket taker $3,200 per month and the concessions workers are paid $ 1,800 per month. Assume that each moviegoer spends $7.00 on concession products and that the cost of the items consumed is $3.00. Compute the number of paying attendees (our internal control is excellent and there are no freebies) that must view the movie during the month in order to breakeven.
a) List and total the fixed costs associated with showing a film at this theater?
b) List and total the variable costs associated with each ticket sold?
c)What is the contribution margin per ticket sold?
d) Compute the number of paying attendees (our internal control is excellent and there are no freebies) that must view the movie during the month in order to breakeven.
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