The income statements for Anything Tennis for the years ending December 31, 2018 and 2017, are provided below. Required:
Complete the "Amount" and "%" columns to be used in a horizontal analysis of the income statements for Anything Tennis.
(Increase (Decrease)
2018 2017 Amount %
Net sales $3,525,000 2,640,000
Cost of goods sold 2,160,000 1,385,000
Gross profit 1,365,000 1,255,000
Operating expenses 815,000 634,000
Operating income 550,000 621,000
Other income (expense) 10,200 6,100
Income before tax 560,200 627,100
Income tax expense 100,500 141,000
Net income $459,700 $486,100

Suppose there are three types of consumers who attend concerts at your university’s performing arts center: students, staff, and faculty. each of these groups has a different willingness to pay for tickets; within each group, willingness to pay is identical. there is a fixed cost of $1,000 to put on a concert, but there are essentially no variable costs. for each concert: i. there are 140 students willing to pay $20. (ii) there are 200 staff members willing to pay $35. (iii) there are 100 faculty members willing to pay $50. a) if the performing arts center can charge only one price, what price should it charge? what are profits at this price? b) if the performing arts center can price discriminate and charge two prices, one for students and another for faculty/staff, what are its profits? c) if the performing arts center can perfectly price discriminate and charge students, staff, and faculty three separate prices, what are its profits?