Question

Thornton Cinemas is considering a contract to rent a movie for $1,500 per day. The contract requires a minimum one-week rental period. Estimated attendance is as follows: Monday 430 Tuesday 270 Wednesday 200 Thursday 590 1 Friday ,030 Saturday 1,030 Sunday 470 8 02:05:45 Required Skipped a. Determine the average cost per person of the movie rental contract separately for each day. b. Suppose that Thornton chooses to price movie tickets at cost as computed in Requirement a plus $2.00. 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. Complete this question by entering your answers in the tabs below. Req A Req B and C Determine the average cost per person of the movie rental contract separately for each day. (Round your answers to 2 decimal places.) Monday Tuesday Wednesday Thursday Friday Saturday Sunday Day Average cost per person

Answer 1

Ans:

		Monday	Tuesday	Wednesday	Thursday	Friday	Saturday	Sunday	Total
	Estimated attendance	430	270	200	590	1030	1030	470	4020
a)	Average cost per person [2200/Estimated attendance for the day]	$      3.49	$   5.56	$        7.50	$    2.54	$   1.46	$     1.46	$ 3.19
b)	Price to be charged [Cost per person+$2.00]	$      5.49	$   7.56	$        9.50	$    4.54	$   3.46	$     3.46	$ 5.19
c)	Weekly average price = 1500/Average attendance = 1500/(4020/7) =	$            2.61