Reference no: EM132479759
Question - Gryffindor House is a small theater located in Pittsburgh Pennsylvania. The theater contains 1,500 seats. You have recently been hired to manage the theater. Profits at the theater have been all over the place and the board would like you to make some recommendations about pricing of tickets. The board would like to make a profit of $40,000 per run. A run is all of the performances for a particular show.
There are two shows where some decisions should be made. The first show is Goblets of Fire and the second show is Flight of the Hippogriff.
Below is some information for Goblets of Fire
Ticket price $25
Variable costs $15
Fixed costs 2,000 (this is for all the performances in the run)
It is expected that you will have 3 performances and that each performance will be about 75% full, for the full run of the show (all 3 performances). For each question below use the information given to answer the question.
Required -
1. What is the Net Operating Income for the run of the show?
2. What is the Breakeven point for this run in units (seats)? Compare this to the expected number of units sold. Explain how this impacts the theater's profits.
3. Will Goblets of Fire meet the target profit set by the board? Calculate how many seats would need to be sold to meet the target profit.
4. What is the Goblets of Fire's margin of Safety?
5. You wonder if increasing the number of performances and adding a Thursday night performance would increase profits. Fixed costs would increase by $500. You expect that you would sell about 60% of seats on a Thursday night. Should you add Thursday night? Explain and be sure to use your calculations to support your argument.
What recommendations can you make to increase the profitability of Goblets of Fire? Give at least 2 specific recommendations and use analysis to support your recommendation.
|
Employment fell because of a sectoral shock
: A macroeconomist suggests that, since aggregate output and employment have decreased, the government should increase expenditures on goods
|
|
Make a general journal for fiscal year for general fund
: Make a general journal for fiscal year 2020 for the General Fund and for the governmental activities. (If no entry is required for a transaction/event
|
|
What is Adams taxable benefit on the above load
: Adam started a job at STD Sales. On Feb 1 2019. He had lived in an apartment until May 2019, What is Adams taxable benefit on the above load for 2019
|
|
Review the toulmin-model outline
: Review the Toulmin-model outline and your completed Assignment - Compose a position paper representing the con side of your new topic
|
|
What is the net operating income for the run of the show
: Fixed costs 2,000 (this is for all the performances in the run) What is Net Operating Income for run of the show? What is the Goblets of Fire's margin of Safety
|
|
Enter a formula to calculate john expected utility
: John has the following utility function: U = 2Y(0.25) (i.e. 2 x Y raised to the 0.25 power), where Y is the amount of John's income in any given period.
|
|
Calculate the amount of the december
: Calculate the amount of the December 31, 2022 total dividend declared and the amount of dividends in arrears after declaring the December 31, 2022
|
|
Law of diminishing returns to a firm
: Examining the practical implications of these concepts. Please relate the law of diminishing returns to a firm's short-run production costs.
|
|
Suppose a consumer purchases only three goods
: Suppose a consumer purchases only three goods: x, y, and z. All three goods can be normal, but not all of them can be inferior.
|