Question 115829: Please help me with this profit and loss calculation.
The theater box office receipts for a movie "Ratio" for the past four
weeks were $15,000, $12,000, $12,000 and $10,000. The theater owner
pays the movie distributor the following percentages of the box-office
receipts: 70% for each of the first two weeks, 60% for the third week,
and 50% for the fourth week. Other operating expenses are $4,500 per week.
Did the theater make or lose money?
Please explain the calculations. Thank you so much for your help.
Answer by stanbon(75887)   (Show Source):
You can put this solution on YOUR website! The theater box office receipts for a movie "Ratio" for the past four
weeks were $15,000, $12,000, $12,000 and $10,000. The theater owner
pays the movie distributor the following percentages of the box-office
receipts: 70% for each of the first two weeks, 60% for the third week,
and 50% for the fourth week. Other operating expenses are $4,500 per week.
Did the theater make or lose money?
-----------------
1st Week Gain/Loss:
Gain---30% of 15000 = 4500
Loss--- 4500
Net---- $0
---------------
2nd Week Gain/Loss:
Gain---30% of 12000 = 4000
Loss---4500
Net---- (-$500)
-----------------
#3rd Week Gain/Loss
Gain--- 40% of 12000 = 4800
Loss--- 4500
Net--- $300
------------------
4th week Gain/Loss
Gain--- 50% of 10000 = 5000
Loss--- 4500
Net---- (500))
========================
Total Net: 0-500+300+500 = $300
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Cheers,
Stan H.
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