A traveling production of The Lion King performs each year. The average show sells 1,600

tickets at $50 per ticket. There are 110 shows each year. The show has a cast of 60?, each earning an average of $350 per show. The cast is paid only after each show. The other variable expense is program printing costs of $7 per guest. Annual fixed expenses total

$$717,000.

Using the equation you determined? above, solve for the target number of shows.

1.	Compute revenue and variable expenses for each show.
2.	Use the income statement equation approach to compute the number of shows needed annually to break even.
3.	Use the shortcut unit contribution margin approach to compute the number of shows needed annually to earn a profit of $3,824,000 Is this goal? realistic? Give your reason.
4.	Prepare The Lion King?'s contribution margin income statement for 110 shows each year. Report only two categories of? expenses: variable and fixed.
				.

The profit goal of $3,824,000

Is unrealistic or realistic since

The Lion King currently performs110 shows a year.