Calculating break even sales and sales to earn a target profit Using a contribution margin income statement
Fantastic news! We've Found the answer you've been seeking!
Question:
Calculating break even sales and sales to earn a target profit Using a contribution margin income statement
England productions performs londons shows. The average show sells 1,300 tickets at $60 per ticket. There are 175 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 65, each earning a net average of $340 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 $728,000
- How to compute revenue and variable costs?
- How to use the equation approach to compute the number of shows England Productions must perform each year to break even?
- How to use the contribution margin ratio approach to compute the number of shows needed each year to earn a profit of $5,687,500. Is this profit realistic?? What is the reasoning?
- How would you create England productions contribution margin income statement for 175 shows performed in 2018. Repot only two categories of costs; Variable and fixed
Posted Date: