Reference no: EM132984721

Bellevue Amateur Dramatics Club produces Shakespearian plays in a rural country setting. There are two productions every year and each production has five performances. The average performance sells 150 tickets. The cast are not paid; however, the director is paid $500 per year. Stage backdrops are made and printed locally by a TAFE art school which charges $400 for the two sets. Guests receive a programme and a ticket at a cost of $4 for printing per guest and also a complimentary drink at an average cost of $2 per guest. Members of the club act as staff for the performance and are paid $30 per show and each show needs three students to help. The shows are popular and are always sold out in advance; tickets sell for $30 each.

Problem a) Calculate the annual fixed costs

Problem b) Calculate the variable expenses per show

Problem c) Calculate the contribution margin per ticket sold/patrons

Problem d) Calculate the break-even point in terms of number of tickets sales/patrons

Problem e) Calculate the annual profit or loss of the business with the expected number of shows planned for the year