(1) Choose a company with which you are familiar that manufactures a product or provides a service. In this activity, you will be making reasonable estimates of the costs and activities associated with this company; companies do not typically publish internal cost or process information.

(QUESTION 1A) Describe a potential cost driver for each of the variable and mixed costs you listed. Explain why each cost driver would be appropriate for its associated cost.

(2).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.

(question 2A) Suppose that 20% of the 1,400 tickets available for each show are sold at a discount price of $25 per ticket. Given this scenario, how many shows should be performed in a year to break even? How many regular and discount tickets would be sold in total then?

(QUESTUION 2B) Compute the number of shows needed annually to earn a profit of $4,836,400. Is this goal realistic? Write a message (around 100 words) to the manager of the shows presenting your opinion about such a target profit and giving advice about what he or she should do about it.