1. need help understanding
Colob Productions pertorms London shows. The average show tolls 1.430 tickets at $55 per ticket. There are 170 shows per year. No additionat shows can be held as the theoter is also used by other production companias. The average show has a cast of 50 , each earning a not average of $350 per show The cast is paid aller each show. The other variable cost is a program printing cost of $11 per guest. Annual fixed costs total $999.240 Fead the teofirements Requirements 1. Compute revenue and variable costs for each show. 2. Use the equation approach to compute the number of shows Celeb Productions must perform each year to break even. 3. Use the contribution margin ratio approach to compute the number of shows needed each year to earn a profit of $5,750,000. (Round contribution ratio to two decimal places.) Is this profit goal realistic? Give your reasoning. 4. Prepare Celeb Productions' contribution margin income statement for 170 shows performed in the year. Report only two categories of costs: variable and fixed. Requirement 1. Compute revenue and variable costs for each show Select the formula and enter the amounts to compute sales revenue for each show. Requirement 2. Use the equation approach to compute the number of shows Celeb Productions must perform each year to break even. First, select the formula to compute the required sales in units to break even. =Targetprofit Rearrange the formula you determined above and compute the required number of shows to break even. The number of shows needed annually to break even is Requirement 3. Use the contribution margin ratio approach to compute the number of shows needed each year to earn a profit of $5,750,000. (Round contribution ratio to two decimal places.) Is this profit goal realistic? Glve your reasoning Begin by showing the formula and then entering the amounts to calculate the required sales dollars to eam a profit of 55,750,000. Round the required sales in dollars to the nearest whole dollar. Round amounts in the formula to two decimal places, XXXX. Abbreviation used CM = contribution margin.) Now use the inlormation given and the required sales in dollors computed in the previous utep to detarmine the required number of shows needed each year to earn a proft of $5,750.000. (Round your answer up to the nearest whole number.) The number of shows needed annually to earn a profit of $5,750,000 is Is this profit goal realistic? Give your reasoning. The profit goal of $5,750,000 is since Celeb Productions currently performs 170 shows a year Requitement 4. Prepare Celeb Productions' contribution margin income statement for 170 shows performed in the year Report onivy Wo Celeb Productions Contribution Margin Income Statemeat Year Ended December 31,20x Operating income (Loss)
