Reference no: EM132653846

Problem 1: Compute the breakeven point in number of tickets to be sold and in U.S. dollars

Problem 2: Comment on the feasibility of the required number of ticket sales computed from above, keeping in mind the nature of the play, that it is staged by a community theater organization, and the ethnicity aspect. Suggest ways for SETU to achieve the necessary amount of ticket sales. A common practice in SETU was to ignore labor or personal items contributed by members and loyal supporters who typically did not ask for receipts from the organization for tax purposes. We referred to these contributions as hidden costs because they were not included in the budget nor were they recorded in the financial statements. However, in the scenario where members or supporters did not have the expertise, these functions would require paid services, and the items would have to be purchased or rented.

Problem 3: Identify and provide the approximate value of human resources and personal items that were contributed by actors and patrons in the Kamala production. b. Incorporate these hidden costs, and measure their impact on the budgeted statement in Question 1 and the breakeven numbers and U.S. dollars calculated in Question 2.

Problem 4: Evaluate the importance of the hidden costs mentioned in the case that were not explicit cash outlays or when the donors did not require a receipt for tax purposes.

Problem 5: In the third case, assume that SETU would receive sponsorship funds (cash and in-kind donations) in addition to ticket sales for four shows. Compute the breakeven point in number of tickets to be sold and in U.S. dollars.

Problem 6: . In the fourth case, assume that SETU would receive sponsorship funds (cash and in-kind donations) in addition to ticket sales for three shows.