Question

The selling price of a movie ticket on an online platform is $\$20$. The platform deducts a $3\%$ service charge and transfers the rest to the theater. The theater deposits $30\%$ of the received amount as the entertainment tax to the state government and gives another $32\%$ to producers. If the rest of the amount is the profit, find the net profit of the theater on each ticket.

• A. $\$7.372$
• B. $\$11.252$
• C. $\$11.64$
• D. $\$19.4$

Answer 1

The correct option is A $\$7.372$

Service charge on each ticket (S.P $\$20)$ taken by the online platform $=\frac{3}{100}\times 20=\$\frac{3}{5}$

Amount received by the theater $=20-\frac{3}{5}=\frac{97}{5}=\$19.4$

Cost to the producers $\left(32\%\text{of}\$19.4\right)=\frac{32}{100}\times \frac{97}{5}=\frac{12\times 97}{30100}=\$6.208$

Entertainment tax to the government $\left(30\%\text{of}\$19.4\right)=19.4\times \frac{30}{100}=\$5.82$

Net gain by the theater $=19.4-6.208-5.82=\$7.372$