Reference no: EM132523612

ABC Theater runs multiple shows each month. Each of the 5 theaters has 100 seats. The selling price for each ticket is $10, no matter which show or time of day. Adults, Seniors and Children admissions are all $10 each.

Given the following financial data:

• ABC Theaters pays $8,000 rent for the theater equipment each month
• ABC Theaters owns the building and records depreciation of $1,500 each month
• The management has determined that there is a variable cost of $2 per admission that accounts for maintenance and supplies.
• The movie house managers salary is $36,000 per year or $3,000 per month. The manager also receives a $1 bonus for each paid admission to the theater.
• Finally, the ABC Theaters wants to achieve a $10,000 profit at the end of each month.

Question 1: Compute the number of ticket admissions required to be sold each month to achieve break even, including the profit goal of $10,000 each month.