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hous Productions performs London shows. The average show sells 1,300 tickets at $50 per ticket. There are 145 shows per year. No additional shows
hous Productions performs London shows. The average show sells 1,300 tickets at $50 per ticket. There are 145 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 72, each earning a net average of $300 per show. The cast is paid after each show. The other variable cost is a program-printing cost of $9 per guest Annual fixed costs total $570,600 Read the requirements Requirement 1. Compute revenue and variable costs for each show Select the formula and enter the amounts to compute sales revenue for each show == Sales revenue per show Select the formula and enter the amounts to compute variable costs for each show. Compute the variable costs per show for each cost separately, and then compute the total variable costs per show Cost of programs Cost of performers Variable costs per show = 4 Total variable costs Requirement 2. Use the equation approach to compute the number of shows Famous Productions must perform each year to break even First, select the formula to compute the required sales in units to break even Rearrange the formula you determined above and compute the required number of shows to break even. Target profit The number of shows needed annually to break even is
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