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Fave Motion Pictures sells movie tickets for $10 per movie patron

Accounting

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Fave Motion Pictures sells movie tickets for $10 per movie patron. Variable costs are $7.50 per movie patron and fixed costs are $50,000 per month. The company's relevant range extends to 35,000 movie patrons per month. What is Fave Motion Pictures' projected operating income if 25,000 movie patrons see movies during a month?

A) $62,500

B) $12,500

C) $250,000

D) $200,000