Briefly describe the calculations you made when filling in the table data.


Tracy, the manager at Ruby Red Movie Theater, is extremely worried about concession stand sales. Tracy has indicated that she is at a loss regarding how many employees should be working in the concession stand area and how many concession stand items should be sold per day. Tracy is even considering closing the concession stand area.

Output, labor, and price information for items sold in the concession stand area have been provided in the Unit V Assignment Worksheet. Your assignment is to help Tracy figure out the optimal number of workers and the number of items that should be sold daily. Let’s keep the concession stand open!

Access the Unit V Assignment Worksheet in Blackboard.

Complete the following in the Unit V Assignment Worksheet.

Part 1

Complete the table, calculating the total variable cost of labor, total cost per day, total revenue, profit, average variable cost, average fixed cost, average total cost, marginal cost, and marginal revenue.

Part 2

Answer the questions after the table as a guide to use when writing your essay.

Part 3

Write an essay of at least 750 words.

  • Briefly describe the calculations you made when filling in the table data.
  • Indicate the profit-maximizing level of output and employees along with the two ways you found this optimal level. This profit-maximizing level of output and employees will tell you how to keep the concession stand open.
  • Describe the average price level for concession stand items that would be required to force the theater to shut down the concession stand in the short run, and include how you determined this level.

Include a copy of the completed table and your answers to the questions in the worksheet after your essay (e.g., on the page following your reference page, if you have one). The word count will not include the information in the table.

All sources used, including the textbook, must be referenced; paraphrased and quoted material must have accompanying citations. All references and citations used must be in APA Style.

Unit V Assignment Worksheet

This worksheet is intended to help you develop the information you will use to complete your Unit V Essay.  You are expected to include the completed table in your Unit V Essay. The additional questions after the tables are intended to help you formulate your ideas concerning what you will write in your essay.

Just completing this worksheet does not constitute completing the Unit V Assignment. The information from the worksheet must be incorporated into your essay submission. Follow the instructions below.


  1. Complete all parts of the Unit V Assignment Worksheet.
  2. Answer the questions after the table; these will help you formulate your ideas for writing the essay part of your Unit V Assignment. You are expected to expand on these questions in your writing.
  3. Include the tables and your question responses from the Unit V Assignment Worksheet as an appendix following the essay part of your Unit V Assignment.

On the next page, you are provided with a table showing the different levels of output for concession stand items that are possible as the number of workers used changes. Also included are the price of labor, the total fixed cost per day, and the average price of concession stand items. Using the information you learned from the textbook for this class as well as the information in the Unit V Lesson:

  1. Complete the table below concerning concession stand topics.
  2. Answer all of the questions listed below the table. As mentioned, doing this will help you when formulating your thoughts for the essay part of your Unit V assignment.
   Round These Answers to the Nearest Whole NumberRound These Answers to the Nearest Penny
Output (Concession Stand Items)Number of Workers Employed Per DayPrice of Labor Per Worker Per DayTotal Variable Cost of LaborTotal Fixed Costs Per DayTotal Cost Per DayAverage Price of Concession Stand ItemsTotal RevenueProfitAverage Variable CostAverage Fixed CostAverage Total CostMarginal CostMarginal Revenue
00$120 $2,000 $8.00       
1002$120 $2,000 $8.00       
4004$120 $2,000 $8.00       
7506$120 $2,000 $8.00       
9008$120 $2,000 $8.00       
1,02510$120 $2,000 $8.00       
1,12512$120 $2,000 $8.00       
1,20014$120 $2,000 $8.00       
1,25016$120 $2,000 $8.00       
1,28018$120 $2,000 $8.00       
1,29020$120 $2,000 $8.00       
1,28922$120 $2,000 $8.00       
1,28024$120 $2,000 $8.00       

Questions:  Use your responses to these questions to help you formulate ideas for writing your Unit V Essay.

Question 1:  What is the level of profit that is made by Ruby Red Movie Theater if 2 workers are employed at the concession stand and only 100 items of output are produced (sold) at the concession stand? 



Question 1a: Should Ruby Red Movie Theater continue to operate the concession stand if only 100 concession stand items are being produced (sold) by 2 workers?  Why, or why not?



Question 2:  If Ruby Red Movie Theater wanted to produce (sell) 1,290 items from the concession stand, would profit be maximized?  Why, or why not?



Question 3:  At what level of output and labor input are concession stand profits maximized for Ruby Red Movie Theater?  What are two ways you could tell if this was correct from the table data?



Question 4:  How are average total cost and marginal cost related to marginal product and average product?



Question 5:  What do you notice about marginal revenue and the price of output (average price of concession stand items in this case)?



Question 6: What is the maximum level of profit that can be generated from concession stand items?



Next Step:

Once you have completed the table and answered questions 1–6 above, your next step will be to write your essay. The information from these questions should be used when writing the essay. See Unit V Assignment instructions.

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