Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

I need the quickly please Requirements 1. Compute revenue and variable costs for each show. 2. Use the equation approach to compute the number of

I need the quickly please
image text in transcribed
image text in transcribed
image text in transcribed
Requirements 1. Compute revenue and variable costs for each show. 2. Use the equation approach to compute the number of shows Celeb Productions must perform each year to break even. 3. Use the contribution margin ratio approach to compute the number of shows needed each year to earn a profit of $4,500,000. (Round contribution ratio to two decimal places.) Is this profit goal realistic? Give your reasoning. 4. Prepare Celeb Productions' contribution margin income statement for 145 shows performed in the year. Report only two categories of costs: variable and fixed. Celeb 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. Requirement 1. Compute revenue and variable costs for esch show. Select the formula and enter the amounts to compute sales revenue for each show: Select the formula and enter the amounts to compute variable costs for each show. Compute the variable costs per Bhow for each cost separately, and then compute the total variable costs per show. Total variable costs Requirement Z. Use the equation approach to compute the number of shows Celeb Productions must pertorm each year to break, even. First. select the formula to compude the required sales in units to break even. Rearrange the formula you determined above and compute the requited number of shows to break even. The number of shows needed annually to break even is Requirement 3. Use the oontribution margin ratio approach to compute the number of shows needed each year to earn a profit of $4,500,000. (Round contribution ratio to two decimal places.) is this proft goal realistic? Give your reasoning Begin by showing the formula and then entering the amounts to calculate the required sales dollars to earn a profit of \$4,500,000, (Round the required sales in dollars to the nearest whole dollar. Round amounts in the formula to two decinal places, . Abbreviation used: C.1S= contrbution margin.) Now use the information given and the required sales in dollars computed in the previous step to determine the required number of shows needed each year to eam a profit of $4,500,000. (Round your answer up to the neareat whole number.) The number of shows needed annually to earn a prote of 54,500,000 is Is this profit goal realistic? Give your reasoning- The profi goal of $4,500,000 is since Celeb Productions currently performs 145 shows a year. Requirement 4. Prepare Celeb Productions' contribution margin income statement for 145 shows performed in the year. Report only two categones of costs: variable and fixed

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

Step: 3

blur-text-image

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

Transfer Pricing Audits In China

Authors: J. Li, A. Paisey

2007th Edition

0230001963, 978-0230001961

More Books

Students also viewed these Accounting questions

Question

2. Outline the functions of nonverbal communication

Answered: 1 week ago