A traveling production of

Wicked

performs each year. The average show sells

1,400

tickets at

$55

per ticket. There are

125

shows each year. The show has a cast of

45,

each earning an average of

$310

per show. The cast is paid only after each show. The other variable expense is program printing costs of

$8

per guest. Annual fixed expenses total

$829,600.

Read the requirements

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 $6,533,100 Is this goal realistic? Give your reason.
4.	Prepare WickedWicked's contribution margin income statement for 125 shows each year. Report only two categories of expenses: variable and fixed.

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