Managerial Accounting Chapter 5 question

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ReqUirementS Compute revenue and variable costs for each show. Use the equation approach to compute the number of shows Celeb Productions must perform each year to break even. Use the contribution margin ratio approach to compute the number of shows needed each year to earn a prot of $4,128,000. (Round contribution ratio to two decimal places.) Is this prot goal realistic? Give your reasoning. Prepare Celeb Productions' contribution margin income statement for 140 shows performed in the year. Report only two categories of costs: variable and xed. Celeb Productions performs London shows. The average show sells 900 tickets at $65 per ticket. There are 140 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 55, each earning a net average of $330 per show. The cast is paid after each show. The other variable cost is a program-printing cost of $9 per guest. Annual xed costs total $580,500. Read the muirements. Requirement 1. Compute revenue and variable costs for each show. Select the formula and enter the amounts to compute sales revenue for each show. x = Sales revenue per show x = 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. x = Variable costs per show Cost of programs x = Cost of performers x = Total variable costs Requirement 2. Use the equation approach to compute the number of shows Celeb Productions must perform each year to break even First, select the formula to compute the required sales in units to break even. Target prot Rearrange the formula you determined above and compute the required number of shows to break even. The number of shows needed annually to break even is Requirement 3. Use the contribution margin ratio approach to compute the number of shows needed each year to earn a prot of $4,128,000. (Round contribution ratio to two decimal places.) Is this prot goal realistic? Give your reasoning. Begin by showing the formula and then entering the amounts to calculate the required sales dollars to earn a prot of $4,128,000. (Round the required sales in dollars to the nearest whole dollar. Round amounts in the formula to two decimal places. XX.XX. Abbreviation used: CM = contribution margin.) ( + )+ = Required sales in dollars ( + )+ %= Now use the infon'nation given and the required sales in dollars computed in the previous step to determine the required number of shows needed each year to earn a prot of $4,128,000. (Round your answer up to the nearest whole number.) The number of shows needed annually to earn a prot of $4,128,000 is Is this prot goal realistic? Give your reasoning. The prot goal of $4,128,000 is V since Celeb Productions currently performs 140 shows a year. Requirement 4. Prepare Celeb Productions' contribution margin income statement for 140 shows performed in the year. Report only two categories of costs: variable and fixed. Celeb Productions Contribution Margin Income Statement Year Ended December 31, 20XX Operating Income (Loss)