Question

Kirkland Theater sells season tickets for six events at a price of $90. In pricing the tickets, the planners assigned the leadoff event a value of $22 because the program was an expensive symphony orchestra. The last five events were priced equally; 1,140 season tickets were sold for the 2016 season. Required: a. Calculate the theater's earned revenue after the first three events have been presented. (Do not round intermediate calculations.)

Answer 1

Answer: $56088

Step-by-step explanation:

To get the value for the theater's earned revenue after the first three events have been presented, we need to know the price per the remaining event and this will be:

= ($90 - $22) / 5

= $68/5

= $13.60

Therefore, the earned revenue after the first three events will then be:

= ($22 + $13.60 + $13.60) × 1140

= $49.20 × 1140

= $56088

Therefore, the earned revenue is $56088