Hi, please solve the below problem for MBA 560 financial and managerial accounting ASAP.

A traveling production of Hairspray performs each year. The average show sells 1,600 tickets at $40 per ticket. There are 120 shows a year. The show has a cast of 40, each earning an average of $340 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 $601,600.

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 $2,857,600. Is this goal realistic? Give your reason.
	4. Prepare Hairspray's contribution margin income statement for 120 shows each year. Report only two categories of expenses: variable and fixed.

Requirement 1.

The revenue for each show is

$ .

The variable expenses for each show are

$ .

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 to break even.

The number of shows needed annually to break even is?

Requirement 3. Using the shortcut unit contribution margin approach, determine the formula that is used to compute the number of shows needed annually to earn a profit of $2,857,600.

(

+

) /

=

Target # of shows

The number of shows needed annually to earn a profit of $2,857,600 is?

.

The profit goal of $2,857,600 is realistic, or unrealistic since Hairspray currently performs 120 shows a year.

Requirement 4. Prepare the contribution margin income statement using only two categories of expenses. (Check your spelling carefully and do not abbreviate.)

Hairspray
Contribution Margin Income Statement
For the Year Ended December 31