Use the Table Below to Create a Nonlinear Model Based

question 13

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. $$\begin{array} {| l | l | l | l | l | l | l | } \hline \begin{array} { l } \text { Atlas Mavie } \\\text { Theater } \\\text { Ticketing }\end{array} & & & & & & \\\hline & & & & & & \\\hline \text { Data } & & & & & & \\\hline & & & & & & \\\hline \text { Ticket Class } & \begin{array} { l } \text { Current } \\\text { Rate }\end{array} & \begin{array} { l } \text { Avernge } \\\text { Daily } \\\text { Sald }\end{array} & \text { Elasticity } & \begin{array} { l } \text { Tatal } \\\text { Seating } \\\text { Capacity }\end{array} & { \text { Price Range } } \\\hline \text { Classic } & \$ 8.45 & 150 & - 1.5 & 300 & \$ 6.50 & \$ 7.50 \\\hline \text { Silver } & \$ 13.25 & \mathbf { 8 0 } & - 2 & & \$ 1.50 & \$ 12.50 \\\hline \text { Gald } & \$ 17.50 & \mathbf { 3 0 } & - 1 & & \$ 15.50 & \$ 16.50 \\\hline\end{array}$$
-Which of the following is true of the nonlinear model created for the Atlas movie ticket repricing scenario?

• A) The projected revenue for the Gold class is infeasible within the price range provided.
• B) The projected value for most tickets sold is for the Silver class.
• C) The total projected tickets sold exceed the total seating capacity.
• D) The projected revenue is lowest for the Gold tickets.

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Definitions:

Horizontal Analysis

An analysis method where financial statement items are compared across different periods, to identify trends or significant changes over time.

Securities and Exchange Commission

A U.S. government agency responsible for enforcing the federal securities laws, proposing securities rules, and regulating the securities industry.

Regulation S-X

A set of rules issued by the SEC that outlines the specific form and content of financial reports, especially for publicly traded companies.

Stockholder Profitability

The extent to which shareholders earn returns on their investments in a company through dividends and stock price appreciation.