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The cost of running a movie theatre is Rs . 10,000 per day, plus additional Rs. 5000 per show. The theatre has 200 seats. A new movie released on Friday. There were three shows, where the ticket price was Rs. 250 each for the first two shows and Rs. 200 for the late-night show.
For all shows together, total occupancy was 80%. What was the maximum amount of profit possible?
The total cost consists of a fixed daily fee plus a per-show fee:Β Daily fixed cost: Rs. 10,000Β
Cost for 3 shows: 3*5,000 = Rs. 15,000
Total Cost: 10,000 + 15,000 = Rs. 25,000
The theatre has 200 seats and runs 3 shows, meaning there are 600 total available seats.
Total occupancy (80%): 0.80*600 = 480
To maximise profit, we want the most expensive tickets to sell out first.
Show 1 (Rs. 250): Max capacity = 200 viewers.
Show 2 (Rs. 250): Max capacity = 200 viewers.
Show 3 (Rs. 200): Remaining viewers = 480 - (200 + 200) = 80Β viewers.
First two shows: 400 Γ 250 = Rs. 100,000
Late-night show: 80*200 = Rs. 16,000
Total Revenue: 1,16,000
Profit = Revenue - Cost
Profit = 1,16,000 - 25,000 = Rs. 91,000
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