Use the Table Below to Create a Nonlinear Model Based

question 17

Multiple Choice

Use the table below to create a nonlinear model based on the table to answer the following questions) .
The Atlas Movies Theater is planning to reprice their ticket rates to maximize revenues. They have three classes of tickets: Classic, Silver, and Gold. The table below provides information on the average ticket sales, revenue and price elasticity on demand. They have a total seating capacity of 300. The table also provides the price range within which they plan to reduce their ticket rates. $$\begin{array} {| l | l | l | l | l | l | l | } \hline \begin{array} { l } \text { Atlas Mavie } \\\text { Theater } \\\text { Ticketing }\end{array} & & & & & & \\\hline & & & & & & \\\hline \text { Data } & & & & & & \\\hline & & & & & & \\\hline \text { Ticket Class } & \begin{array} { l } \text { Current } \\\text { Rate }\end{array} & \begin{array} { l } \text { Avernge } \\\text { Daily } \\\text { Sald }\end{array} & \text { Elasticity } & \begin{array} { l } \text { Tatal } \\\text { Seating } \\\text { Capacity }\end{array} & { \text { Price Range } } \\\hline \text { Classic } & \$ 8.45 & 150 & - 1.5 & 300 & \$ 6.50 & \$ 7.50 \\\hline \text { Silver } & \$ 13.25 & \mathbf { 8 0 } & - 2 & & \$ 1.50 & \$ 12.50 \\\hline \text { Gald } & \$ 17.50 & \mathbf { 3 0 } & - 1 & & \$ 15.50 & \$ 16.50 \\\hline\end{array}$$
-According to the nonlinear model, which of the following is the projected sales figure for Gold tickets at the new price?

• A) 32
• B) 90
• C) 33
• D) 178

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Definitions:

Depreciation

The accounting method of allocating the cost of a physical or tangible asset over its useful life, reflecting the asset's consumption, wear and tear, or obsolescence.

EBIT

A financial metric that calculates a company's profit by including all costs except for interest and income tax expenses, known as Earnings Before Interest and Taxes.

Free Cash Flow

The amount of cash a company generates after accounting for capital expenditures needed for operations. It is an important measure of financial performance and liquidity.

Capital Expenditures

Long-term investments made by a company in buildings, equipment, or other assets to improve or maintain its business operations.