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Can someone please tell me if these calculations are correct? Thanks! A traveling production of Fiddler on the Roof performs each year. The average show
Can someone please tell me if these calculations are correct? Thanks!
A traveling production of Fiddler on the Roof performs each year. The average show sells 900 tickets at $55 per ticket. There are 115 shows each year. The show has a cast of 70, each earning an average of $260 per show. The cast i guest. Annual fixed expenses total $450,000 paid only after each show. The other variable expense is program printing costs of $7 per Read the requirements The revenue for each show is $ 49,500 The variable expenses for each show are $ 24,500 X Requirements 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. Sales revenue Fixed expenses Variable expenses = Operating income Using the basic income statement equation you determined above, solve for the number of shows to breakeven. 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 $3,100,000 Is this goal realistic? Give your reason. 4. Prepare Fiddler on the Roof's contribution margin income statement for 115 shows each year. Report only two categories of expenses: variable and fixed. The number of shows needed annually to break even is 18 Requirement 3. Use the shortcut unit contribution margin approach to compute the number of shows needed annually to earn a profit of $3,100,000 Is this goal realistic? Give your reason. Begin by selecting the formula. Fixed expenses Operating income ) / Contribution margin per show = Target # of shows Print Done Using the equation you determined above, solve for the target number of shows. The number of shows needed annually to earn a profit of $3,100,000 is 142 The profit goal of $3,100,000 is unrealistic since Fiddler on the Roof currently performs 115 shows a year. Requirement 4. Prepare Fiddler on the Roof's contribution margin income statement for 115 shows each year. Report only two categories of expenses: variable and fixed. Fiddler on the Roof Contribution Margin Income Statement Year Ended December 31 Sales revenue 5,692,500 Variable expenses 2,817,500 Contribution margin 2,875,000 Fixed expenses 450,000 2,425,000 Operating income (loss) Choose from any list or enter any number in the input fields and then continue to the nextStep by Step Solution
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