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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 perform 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.
Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest. How much control does the Fed have over this longer real rate?
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