Maintenance costs for a movie theatre totalled $85,000 for the month of April during which there were 150,000 paid admissions.For the month of May,total maintenance costs were $101,750 with 183,500 paid admissions.The company's accountant is budgeting for the month of June with projected sales of 195,000 paid admissions.What amount should she budget for June maintenance costs?

Question

Quizplus · Accepted Answer

The correct answer is A because the maintenance costs per paid admission are $85,000/150,000 = $0.5667 for April and $101,750/183,500 = $0.5546 for May. Therefore, the budgeted maintenance costs for June with 195,000 paid admissions would be 195,000 * $0.5546 = $108,127.

Maintenance Costs for a Movie Theatre Totalled $85,000 for the Month