A travelling production of The Phantom of the Opera performs 130 shows each year. The average sales for each show are 1,400 tickets at $65 a ticket. The show has a cast of 75, each earning an average of $280 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 $903,000. 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 $4,876,200. Is this goal realistic? Give your reason. 4. Prepare The Phantom of the Opera's contribution margin income statement for 130 shows each year. Report only two categories of expenses: variable and fixed. Requirement 1. Compute revenue and variable expenses for each show. The revenue for each show is $ The variable expenses for each show are 5 Requirement 2. Use the income statement equation approach to compute the number of shows needed annually to break even. Begin by determining the basic income statement equation. = Operating income Using the basic income statement equation you determined above, solve for the number of shows needed annually to break-even. The number of shows needed annually to break-even is Requirement 3. Use the shortcut unit contribution margin approach to compute the number of shows needed annually to earn a profit of $4,876,200. Is this goal realistic? Give your reason. Target # of shows The number of shows needed annually to earn a profit of $4,876,200 is The profit goal of $4,876,200 is since The Phantom of the Opera currently performs 130 shows a year. Requirement 4. Prepare The Phantom of the Opera's contribution margin income statement for 130 shows each year. Report only two categories of expenses: variable and fixed. The Phantom of the Opera Contribution Margin Income Statement For the Year Ended December 31 Operating income (loss)