Answer (C) is correct . Starlight can calculate the weights for a composite ticket as follows: Mr. Wonderful 12 × 3,500 = 42,000 28% That’s Life 20 × 3,000 = 60,000 40% ? All That Jazz 12 × 4,000 = 48,000 32% Totals 150,000 100% The weighted UCM can now be calculated:15*0.28+14*0.4+20*0.32=16.2,(165000+249000+316000+565000)/16.2=79938.
Answer (A) is incorrect because The figure 77,918 results from weighting the shows’ contribution margins by their relative proportions of the average attendance rather than the number of tickets sold.
Answer (B) is incorrect because The figure 79,302 results from simply weighting each of the shows’ contribution margins by 1/3 rather than by their relative proportions of ticket sales.
Answer (D) is incorrect because The figure 81,344 results from weighting the shows’ contribution margins by their relative proportions of the number of performances rather than the number of tickets sold.
|
If Starlight’s schedule of musicals is held, as planned, how many patrons would have to attend for Starlight to break even during the summer season?
