Compute revenue and variable costs for each show employ the

Reference no: EM13395842

British Productions performs London shows. The average show sells 900 tickets at $65 per ticket. There are 155 shows a year. No additional shows can be held as the theater is also used by other production companies. The average show has a cast of 55, each earning a net average of $330 per show. The cast is paid after each show. The other variable cost is program-printing cost of $9 per guest. Annual fixed costs total $580,500.

Requirements

1. Compute revenue and variable costs for each show.

2. Use the income statement and equation approach to compute the number of shows British Productions must perform each year to break even.

3. Use the contribution margin approach to compute the number of shows needed each year to earn a profit of $4,128,000. Is this profit goal realistic? Give your reasoning.

4. Prepare British Productions' contribution margin income statement for 155 shows performed in 2012. Report only two categories of costs: variable and fixed.

Reference no: EM13395842

Questions Cloud

Ordinary income is expected to be 180000 in the current : xyz has been an s corporation since its inception six years ago. on january 1 of the current year the corporations two

Submit a report that analyzes the pros and cons of fdi and : submit a report that analyzes the pros and cons of fdi and capital budgeting strategies utilized by mncs. address

When the gene for tall t plants is dominant over the gene : 1 if the gene for tall t plants is dominant over the gene for short t plants what would be the result of crossing two

Write down major changes in form that books have taken : what are the major changes in form that books have taken through time? currently e-books are proving to be the wave of

Compute revenue and variable costs for each show employ the : british productions performs london shows. the average show sells 900 tickets at 65 per ticket. there are 155 shows a

Find an article that discusses a negotiation situation that : find an article that discusses a negotiation situation that has occurred in a global context e.g. international

Which sampling methodmdashsimple random systematic : determine which level of measurementmdash nominal ordinal interval or ratiomdashis used in the following

What events toward end of 19th century enabled general : what events toward the end of the 19th century enabled general interest magazines to become mass circulation magazines?

Include a cover page containing the title of the assignment : read the consensual relationship agreements case study located in chapter 2. in questions 1 and 2 focus on no ethical

User Account

All Pages