Question

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?

• A. Rs. 1,20,000
• B. Rs. 87,000
• C. Rs. 95,000
• D. Rs. 91,000
• E. Rs. 1,16,000

Answer 1

Answer: (D)

Rs. 91,000

Answer 2

Step 1: Calculate total revenue. The theatre has 200 seats, and the total occupancy was 80%, so:

Seats occupied per show = 200 × 0.8 = 160

Revenue from the first two shows (at Rs. 250 per ticket):

Revenue from 2 shows = 160 × 250 × 2 = 80,000 Rs.

Revenue from the late-night show (at Rs. 200 per ticket):

Revenue from 1 show = 160 × 200 = 32,000 Rs.

Total revenue:

80,000 + 32,000 = 1,12,000 Rs.

Step 2: Calculate total cost. Fixed cost for the day:

10,000 Rs.

Cost per show:

5000 × 3 = 15,000 Rs.

Total cost:

10,000 + 15,000 = 25,000 Rs.

Step 3: Calculate profit. Profit:

Profit = Total Revenue − Total Cost

Profit = 1,12,000 − 25,000 = 87,000 Rs.

Answer: Rs. 1,16,000