What is curltown cinemas total revenue from cinema admission

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Reference no: EM13920472

Curltown Cinemas operates a chain of 30 cinemas. Standard admission price is $7 per person, but this is subject to certain discounts. Average attendance at a cinema per month on normal price days is 5,000 people, but this is expected to be subject to seasonal variation, as follows.

Month

J

F

M

A

M

J

J

A

S

O

N

D

%

+10

-2

0

+5

-5

-5

+10

+7

-4

-4

0

+12

In December, January, July and August audiences are made up of 60% under-14s, who pay half-price admission. For the rest of the year under 14s represent only 10% of the audience. One day per month all tickets are sold at a special offer price of $1, irrespective of the age of the customer. This invariably guarantees a full house of 200 customers.

Required

(a) What is Curltown Cinemas' total revenue from cinema admissions for a year?

(b) If Curltown puts up prices for over-14s (other than the $1 special offer price) to $8 what will its total revenue from cinema admissions be for the year?

(c) Should the special offer be continued?

Reference no: EM13920472

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