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Question: Explain why is this unrealistic as compared too realistic.
A traveling production of Grease performs each year. The average show sells 1,400 tickets at $50 per ticket. There are
100 shows a year. The show has a cast of 40?, each earning an average of $340 per show. The cast is paid only after each show. The other variable expense is program printing expenses of $8 per guest. Annual fixed expenses total $1,582,000.
The profit goal of $4,836,400 is unrealistic since Grease currently performs 100 shows a year.
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