Ballers (2015-) d.ecu.edu/webapps/assessment/take/launchjisp?course course, asse

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Ballers (2015-) d.ecu.edu/webapps/assessment/take/launchjisp?course course, assessment-id--500536-1&course;,id=-445464 1 &content-d-101; 1 6666 1 &stept; null Graph A is most likely a graph of Salaries of production managers O CEO's salary per unit produced Advertising costs O Textbook cost per student enroled in a course QUESTION 17 Suppose a movie theater chain negotiates a deal with movie producers whereby it will pay the producer a fixed amount to rent a movie (57,000,000) and the theater chain will retlain the entire admission receipts. Further assume that there are no concession sales The chain est rates that i wil sel 700.000 ickets af a price of $1200 each lf ticket sales are 10% less than oss nated what would be the change in pro?tability? Hint: Read about operating leverage on pages 398-goo. Practice exercise # 4 Dont just guess as you won't learn that toy. O 10% decrease 20% decrease 60% decrease 30% decrease Cliek Save and Submit to save and abmi Click Save All Aners to save all answers Save All Answers

Explanation / Answer

Q16. Answer is CEO slary per unit produced Q17. Answer is 60% decrease Explanation: Expected profit Sales revenue (700000*12) 8,400,000 Less: Rental paid 7,000,000 Expected profit 1,400,000 Actual profits: Sales revenue (630000*12) 7560000 Less: Rental paiid 7000000 Actual profits: 560000 Decreasse in profits: 1400000-560000 = 840000 % Decreasse in profits: 840000/1400000*100 = 60%

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