The cost of running a movie theatre is Rs. 10,000 per day, plus additional Rs. 5000 per show. The theatre has 200 seats. A new movie released on Friday. There were three shows, where the ticket price was Rs. 250 each for the first two shows and Rs. 200 for the late-night show. For all shows together, total occupancy was 80%. What was the maximum amount of profit possible?
Explanation:
There are 3 shows of 200 seats with 80% occupancy, hence 80% of 600 = 480 tickets were sold.
Profit will be maximum when maximum tickets are sold for first two shows (which have higher ticket price) and least tickets are sold for the night show (which has lower ticket price).
To maximise profit, we will assume first two shows sold 200 + 200 = 400 tickets while the late night show sold only 80 tickets
∴ Total revenue = 400 × 250 + 80 × 200 = 1,00,000 + 16,000 = 1,16,000
Also, total cost = 10000 + 3 × 5000 = 25,000
⇒ Maximum profit = 1,16,000 - 25,000 = 91,000
Hence, option (d).
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