Increasing Movie Ticket Prices Essay

Increasing Movie just the ticket PricesTo conduct an experiment, AMC increased movie ticket wrongs from $9.00 to $10.00 and measured the change in ticket sales. Using the data over the following month, they have concluded that the increase was profitable. However, over the subsequent months, they changed their minds and discontinued the experiment. How did the timing consider their conclusion about the profitability of increasing prices?The timing affected the conclusion because the demand curve at the condemnation was showing AMC that the consumer demand was allowing consumers to be willing to pay $10 per movie ticket at the time of the increase. at present over time the demand of going to the movie has decreased. Consumers will buy much if the price is less comp argond to buying less if the price is higher. So in the instance with AMC they profited from the increase for the send-off month but consumers stopped attending the theaters based on the higher cost.Learning Curve c ompute you have a production technology that can be characterized by a learning curve. each time you increase production by one unit, your cost decreases by $6. The first unit costs you $64 to produce. If you receive a request for proposal (RFP) on a project four units, what is your breakeven price? Suppose that if you get the contract, you estimate that you can win another project for dickens more units. Now what is you break even price for those two units?Basically to find the breakeven price for the units we would have to take the sign cost of $64 it takes to produce one unit and subtract $6 from each unit that is produced subsequently the first unit in order to find the breakeven cost. social unit 1 $64, Unit 2 $58, Unit 3 52, Unit 4 $46 = $220 ( essence price cost) divide the total cost by 4 units which will equal a breakeven price of $55. We would have to sell each unit for the $55 to breakeven. If we added two more units the cost for unit 5 $40 and unit 6 34. This would give a total cost of $74. Divide $74/2 = $37 which would bethe breakeven price for the additional 2 units.Multiconcept Restaurants are a growing TrendA multiconcept restaurant incorporates two or more restaurants, typically chains, beneath one roof. Sharing facilities reduces costs of both real estate and labor. The multiconcept restaurants typically offer a express mail menu, compared with full sized, stand alone restaurants. For example, KMAC operates a combination Kentucky Fried Chicken (KFC)/Taco bell. The food training areas are separate, but orders are taken at share point of sale (POS) stations. If Taco Bell and KFC share facilities, they reduce fixed cost by 30% however, sales in joint facilities are 20% lower than sales in two separate facilities. What do numbers imply for the closing of when to open a shared facility vs. two separate facilities? The numbers will imply to manduction facilities when it allows the businesses to be able to reduce overhead costs in regar ds to economic cost or the economies of image in regards to costs. A business will also use the marginal analysis theory into precondition of when they should take any action that would help in the businesses increasing its profits. So in sharing facilities if both businesses are able to keep costs decreased or continue decreasing over time and sales stay the same or increase, both businesses would profit on switching to a shared facility concept.