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?