Consider the Following Scenario to Answer the Following Questions: EJH

question 54

Multiple Choice

Consider the following scenario to answer the following questions: EJH Cinemas,a movie theater next to your university,attracts two types of customers-those who are associated with the university (students,faculty,and staff) and locals who live in the surrounding area.There are 10,000 university customers interested in purchasing movie tickets from EJH Cinemas,with a maximum willingness to pay of $7 per ticket.There are 20,000 local customers interested in purchasing tickets,with a maximum willingness to pay of $9 per ticket.The movie theater incurs a constant marginal cost of $4 per ticket.For simplicity,assume each customer purchases,at most,one ticket.
-What will be the amount of EJH Cinemas' total revenue if the price is $7 per ticket?

• A) $250,000
• B) $210,000
• C) $180,000
• D) $140,000
• E) $105,000

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Definitions:

Process Layout

An arrangement of workplace resources according to the sequence of production operations.

Material Handling Costs

Expenses related to the movement, protection, storage, and control of materials and products throughout manufacturing, warehousing, distribution, consumption, and disposal.

Takt Time

Pace of production to meet customer demands.