Gryffindor House is a small theater located in Pittsburgh Pennsylvania. The theater contains 1,500 seats. You have recently been hired to manage the theater. Profits at the theater have been all over the place and the board would like you to make some recommendations about pricing of tickets. The board would like to make a profit of $40,000 per run. A run is all of the performances for a particular show.

There are two shows where some decisions should be made. The first show is Goblets of Fire and the second show is Flight of the Hippogriff.

Below is some information for Goblets of Fire

Ticket price $25

Variable costs $15

Fixed costs 2,000 (this is for all the performances in the run)

It is expected that you will have 3 performances and that each performance will be about 75% full, for the full run of the show (all 3 performances). For each question below use the information given to answer the question. Show all work

Prepare a contribution margin income statement.