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The data given relates to Rangoli Cinema for the year 2018-19:-Salary to the staff:One Manager Rs. 80,000 per month10 Gate-keepers Rs. 20,000 per month, each4 Clerks Rs. 25,000 per month, each2 Operators Rs. 40,000 per month, eachElectricity and Oil Rs. 11,65,500Carbon and chemicals Rs. 7,23,500General Expenses Rs. 5,42,500 Advertisement Rs. 34,71,000 Administrative Expenses Rs. 18,00,000 Royalty of Print Rs. 1,40,70,000The premises are valued for Rs. 6,00,00,000 and the estimated life is 15 years. Projectors and equipment costs Rs. 3,20,00,000 on which 10% depreciation is to be charged.Daily 3 shows are arranged, throughout the year. Total capacity of the theater is 625 seats, which are divided into three classes A, B and C. 250 seats dedicated to A, 250 seats dedicated to B and remaining 125 seats available for C. Average 80% occupancy is expected. Weight to be given to the three classes in the ratio of 1:2:3. Determine rates for each class, if management expects 30% return on Gross Proceeds. |
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