Kirkland Theater sells season tickets for six events at a price of $180. In pric
ID: 2366505 • Letter: K
Question
Kirkland Theater sells season tickets for six events at a price of $180. In pricing the tickets, the planners assigned the leadoff event a value of $45 because the program was an expensive symphony orchestra. The last five events were priced equally; 1,200 season tickets were sold for the 2010 season.
(a)
Calculate the theater's earned revenue after the first three events have been presented. (Omit the "$" sign in your response.)
(b)
About 95% of the season ticket holders attended the first event. Subsequent events were attended by about 80% of the season ticket holders. To what extent, if any, should the attendance data impact revenue recognition?
Kirkland Theater sells season tickets for six events at a price of $180. In pricing the tickets, the planners assigned the leadoff event a value of $45 because the program was an expensive symphony orchestra. The last five events were priced equally; 1,200 season tickets were sold for the 2010 season.
Explanation / Answer
Kirkland Theater sells season tickets for six events at a price of $180. In pricing the tickets, the planners assigned the leadoff event a value of $45 because the program was an expensive symphony orchestra. The last five events were priced equally; 1,200 season tickets were sold for the 2010 season. Required: (a) Calculate the theater's earned revenue after the first three events have been presented. (Omit the "$" sign in your response.) Total Price of 6 events is $180 First Event is $45. So remianing 5 events price = 180-45=$135 So per event price of remaining 5 events = 135/5 = $27 Revenue recognised for First 3 events : (45+27+27)*1200 = $118,800 ....Ans(1) (b)About 95% of the season ticket holders attended the first event. Subsequent events were attended by about 80% of the season ticket holders. To what extent, if any, should the attendance data impact revenue recognition? As it a season tickets. SO once event is over the complete revenue for that event is recognsied. The attendance has no relation to event as tickets are presold.
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