3. British Productions performs London shows. The average show sells 1,000 tickets at $60 per ticket. There are 165 shows per year. No additional shows can be held as the theater is also used by other production companies. The average show has a cast of 60, each earning a net average of $320 per show. The cast is paid after each show. The other variable cost is a program-printing cost of $8 per guest. Annual fixed costs total $459,200. Read the requirements? Requirement 1. Compute revenue and variable costs for each show. Select the formula and enter the amounts to compute sales revenue for each show. x Net sales revenue per unit $ 1,000 Number of units sold 60 = Sales revenue per show = $ 60,000 Select the formula and enter the amounts to compute variable costs for each show. Compute the variable costs per show for each cost separately, and then compute the total variable costs per show. (2) = Variable costs per show Cost of programs x Cost of performers Total variable costs Requirement 2. Use the equation approach to compute the number of shows British Productions must perform each year to break even. Target profit First, select the formula to compute the required sales in units to break even. (3) (5) - 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 $4,264,000. Is this profit goal realistic? Give your reasoning. Begin by showing the formula and then entering the amounts to calculate the required sales dollars to earn a profit of $4,264,000. (Round the required sales in dollars to the nearest whole dollar. Round amounts in the formula to two decimal places, XX.XX. Abbreviation used: CM = contribution margin.) ( 6) + (7 ) (8) = Required sales in dollars + Now use the information given and the required sales in dollars computed in the previous step to determine the required number of shows needed each year to earn a profit of $4,264,000. (Round your answer up to the nearest whole number.) The number of shows needed annually to earn a profit of $4,264,000 is Is this profit goal realistic? Give your reasoning. The profit goal of $4,264,000 is (9) since British Productions currently performs 165 shows a year. Requirement 4. Prepare British Productions's contribution margin income statement for 165 shows performed in 2018. Report only two categories of costs: variable and fixed. British Productions Contribution Margin Income Statement Year Ended December 31, 2018 (10) |(11) (12) (13) Operating Income (Loss) 1: Requirements Compute revenue and variable costs for each show. Use the equation approach to compute the number of shows British Productions must perform each year to break even. 4. Prepare British Productions's contribution margin income statement for 165 shows performed in 2018. Report only two categories of costs: variable and fixed. Variable costs per unit O Variable costs per unit (1) O O Contribution margin per unit O Fixed costs per unit O Net sales revenue per ticket O Number of units o Operating income O Total fixed cost Total variable cost (2) O O Number of units O Contribution margin per unit o Operating income Fixed costs per unit 0 Total fixed cost O Net sales revenue per ticket Total variable cost O Net sales revenue per unit Variable costs O Net sales revenue per unit Variable costs (3) O O Contribution margin per unit O Fixed costs O Net sales revenue (4) O Net sales revenue per unit Contribution margin per unit o Variable costs O Fixed costs O Net sales revenue (5) O O Contribution margin per unit O Fixed costs O Net sales revenue O Variable costs Target profit Variable costs (9) O O realistic unrealistic (6) O O CM per unit OCM ratio O Fixed costs (7) O O CM per unit OCM ratio O Sales price (8) O O CM per unit O CM ratio O Fixed costs (10) O O Contribution Margin O Cost of Goods Sold O Fixed Costs Gross Profit O Sales Revenue O Variable Costs (12) (11) O Contribution Margin Cost of Goods Sold O Fixed Costs O Gross Profit 1 O Sales Revenue Variable Costs O Contribution Margin Cost of Goods Sold O Fixed Costs Gross Profit O Sales Revenue O Variable Costs (13) O O Contribution Margin O Cost of Goods Sold O Fixed Costs O Gross Profit O Sales Revenue O Variable Costs