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Author Question: Theater Upgrades BMC is considering upgrading the sound systems in their theaters so that they can ... (Read 28 times)

mspears3

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on: Jul 1, 2018
Theater Upgrades BMC is considering upgrading the sound systems in their theaters so that they can patrons can get the full experience from surround sound movies. They discovered that upgrade costs at locations with 12 screens were 170,000 but were 110,000 at locations with six screens. What are the fixed costs of upgrading at a location?

Question 2

For products like parking lots and hotels, the relevant costs and benefits to determine how much capacity to build are
 a. LRMR and LRMC
  b. LRMR and SRMC
  c. SRMR and SRMC
 d. SRMR and LRMC


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Kdiggy

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Reply #1 on: Jul 1, 2018
Answer to Question 1

FC + 12MC = 170,000 and FC + 6MC = 110,000 . Doubling the second equation yields 2FC + 6MC = 220,000 . Subtracting the first equation from both sides of this yields FC = 50,000.

Answer to Question 2

a


mspears3

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Reply #2 on: Jul 1, 2018
Correct answers!


Kdiggy

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Reply #3 on: Jul 1, 2018
Great! Please up vote :D


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