Increasing Movie Ticket Prices Essay

Increasing Movie Ticket PricesTo conduct an experiment, AMC incrementd mental picture ticket prices from $9.00 to $10.00 and measured the change in ticket gross revenue. Using the information over the following month, they have concluded that the increase was profitable. However, over the posterior months, they changed their minds and discontinued the experiment. How did the timing affect their conclusion about the profitability of change magnitude prices?The timing affected the conclusion because the take aim curve at the duration was showing AMC that the consumer demand was allowing consumers to be forgeting to pay $10 per ikon ticket at the date of the increase. Now over time the demand of going to the movie has decreased. Consumers will buy more if the price is little comp bed to buying less if the price is higher. So in the instance with AMC they profited from the increase for the first month but consumers stopped attending the theaters based on the higher damages.Le arning Curve depend you have a outturn technology that can be characterized by a learning curve. any time you increase production by one whole, your cost decreases by $6. The first unit be you $64 to produce. If you receive a pray 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 both more units. Now what is you break even price for those two units? essentially to find the breakeven price for the units we would have to take the initial cost of $64 it takes to produce one unit and subtract $6 from apiece unit that is produced after the first unit in order to find the breakeven cost. whole 1 $64, Unit 2 $58, Unit 3 52, Unit 4 $46 = $220 (total 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 extra 2 units.Multiconcept Restaurants are a growing TrendA multiconcept eatery incorporates two or more restaurants, typically chains, under one roof. sharing facilities reduces costs of both real estate and labor. The multiconcept restaurants typically offer a limited menu, compared with full sized, stand alone restaurants. For example, KMAC operates a combination Kentucky hot up Chicken (KFC)/Taco bell. The food preparation areas are separate, but orders are taken at shared 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 decision of when to make a shared facility vs. two separate facilities? The numbers will imply to sharing facilities when it allows the businesses to be able to reduce overhead costs in regards to economic cost o r the economies of scope in regards to costs. A business will also use the marginal analysis theory into consideration of when they should take any action that would help in the businesses change magnitude its profits. So in sharing facilities if both businesses are able to backup 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.