Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribedimage text in transcribedimage text in transcribedimage text in transcribed

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

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial and Managerial Accounting

Authors: Horngren, Harrison, Oliver

3rd Edition

978-0132497992, 132913771, 132497972, 132497999, 9780132913775, 978-0132497978

More Books

Students also viewed these Accounting questions

Question

On what date is CGT for 2020-21 normally due for payment?

Answered: 1 week ago

Question

15-1. What six elements are required for communication to occur?

Answered: 1 week ago