Solved: What is fave motion pictures projected operating income if, Accounting Basics

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What is fave motion pictures projected operating income if

Fave Motion Pictures sells movie tickets for $10 per movie patron. Variable costs are $7.50 per movie patron and fixed costs are $50,000 per month. The company's relevant range extends to 35,000 movie patrons per month. What is Fave Motion Pictures' projected operating income if 25,000 movie patrons see movies during a month?

A. $12,500
B. $250,000
C. $62,500
D. $200,000

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