A mall movie theater is considering reducing its rates to increase attendance.Which of the following costs is not to that decision?

Question

Quizplus · Accepted Answer

The cost of rent payments is a fixed cost and is not directly affected by the decision to reduce rates. It will remain constant regardless of the number of attendees. The other costs, such as printing tickets, popping popcorn, and post-show theater cleaning, are variable costs that will increase with an increase in attendance due to the lower rates.

A Mall Movie Theater Is Considering Reducing Its Rates to Increase