Lakeshore Cinemas is considering a contract to rent a movie for $1,980 per day. The contract requires a minimum one-week rental period. Estimated attendance is as follows:   Monday Tuesday Wednesday Thursday Friday Saturday Sunday 450 300 200 550 1,000 1,000 500     Required Determine the average cost per person of the movie rental contract separately for each day. Suppose that Lakeshore chooses to price movie tickets at cost as computed in Requirement a plus $3. 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 ticket

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Lakeshore Cinemas is considering a contract to rent a movie for $1,980 per day. The contract requires a minimum one-week rental period. Estimated attendance is as follows:
 

Monday Tuesday Wednesday Thursday Friday Saturday Sunday
450 300 200 550 1,000 1,000 500
 

 

Required

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

  2. Suppose that Lakeshore chooses to price movie tickets at cost as computed in Requirement a plus $3. What price would it charge per ticket on each day of the week?

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

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