The Beejue Theatre has 12 screens on which first-run movies are presented 365 days out of...
- The Beejue Theatre has 12 screens on which first-run movies are presented 365 days out of the year. Each movie is shown an average of 5 times per day. The number of seats for each screen varies, with an average of 400 seats per screen. Ticket prices average $9 per seat. The overall average occupancy rate per movie is 15%.
Compute the total possible tickets that could be sold assuming 100% occupancy.
Compute the estimated total customer demand (number of movie seats sold) for each year.
Compute the estimated total revenues for one fiscal year.
If management wanted to generate $18,000,000 in annual revenues, what would the average occupancy percentage rate need to be?
Homework Answers
Answer to 1
Total Possibe tickets ; 12*400*5*365 ; 8,760,000 Tickets per year
Answer to 2
Customer Demand ; 12*60*5*365 ; 1,314,000 per year
Average occupancy is 15% of 400 ; 60 per screen
Answer to 3
Total revenue = Tickets * Price per tickets
= 1,314,000*$9 ; $11,826,000
Answer to 4
Expected Revenue = $18,000,000
number of days occupied should = 12*5*365*9*X = $18,000,000
X = $18,000,000/197,100 ; 91.3 Days
Occupancy = 91.3/400*100 ; 23% apporx.
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