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Question - The average show sell 900 tickets at $65 per ticket. There are 155 shows per 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 vcst of $9 per guest. Annual fixed costs are $580,500.
1. Compute the number of shows that must be performing to break even.
2. Compute the number of shows needed each year to earn a profit of $4,128,000. Is this profit goal realistic? Give your reasoning.
3. Prepare a contribution margin income statement for 155 shows performed. Report only two categories of costs: variable and fixed.
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