Boston Ballet is located in Boston. The company is housed in the Opera. House in Boston downtown. The company features five different ballets per year: The Dream, Peter Pan, The Nutcracker, Sleeping Beauty, and Swan Lake.

The tentative scheduled for each ballet is as following:

Dream . . . . . . . . . . . . . 5

Peter Pan . . . . . . . . .. 5

Nutcracker . . . . . . . . 20

Sleeping Beauty . . . . 10

Swan Lake . . . . . . . . 5

To produce each ballet, there are costs for costumes, props rehearsals, royalities, guest artist fees, choreography, salary of production staff, music, and wardrobe, These costs are fixed for particular ballet regardless of the number of performances. These direct fixed costs are given below for each ballet.

Dream . . . . . . . . . . . . . 275,500

Peter Pan . . . . . . . . .. 145,500

Nutcracker . . . . . . . . 70,500

Sleeping Beauty . . . . 345,000

Swan Lake . . . . . . . . 155,500

Other fixed costs for the whole company are as follows:

Advertising . . . . . . . . . . . . . . . . . 80,000

Insurance . . . . . . . . . . . . . . . . . 15,000

Administrative Salaries . . . . . . 222,000

Office rental, phone, etc . . . . . 84,000

Total . . . . . . . . . . . . . . . . . . . . . 401,000

For each performance of each ballet, the following costs are incurred.

Symphony . . . . . . . . . . . 3,800

Opera House rental . . . 700

Dancers' payroll .. . . . . . 4,000

Total . . . . . . . . . . . . . . . . . 8,500

The Opera Hose in which the ballet is presented has 1,854 seats, which are classified as A, B, and C. The best viewing ranges from A seats to C seats. Information concerning the different types of seats is given below.

1. Prepare a variable costing income statement for each ballet.

2. Calculate the number of performances to reach the break-even !Or each ballet.

Quantity Price Estimated percentage sold for each performance Nutcracker Other 4 ballets A Seats 114 $35 100% 100% .. B Seats 756 $25 100% 80% C Seats 984 $15 100% 75%