P21-55A Calculating break even sales and sales to earn a target profit; preparing a contribution margin income statement Learning Objectives 1, 2, England Productions performs London shows. The average show sells 1,300 tickets at 4. CM $7,962,500 theater is also used by other production companies. The average show has a cast of 65, each earning a net average of $340 per show. The cast is paid after each show. The other variable cost is a program-printing cost of $8 per guest. Annual fixed costs total $728,000 Requirements 1. Compute revenue and variable costs for each show Use the equation approach to compute the number of shows England Productions must perform each year to break even 2. 3. Use the contribution margin ratio approach to compute the number of shows needed each year to earn a profit of $5,687,500. Is this profit goal realistic? Give your reasoning 4. Prepare England Productions's contribution margin income statement for 175 shows performed in 2018. Report only two categories of costs: variable and fixed. Requirements 1 Compute revenue and variable costs for each show 2. Use the equation approach to compute the number of shows England Productions must perform each year t break even. 3. Use the contribution margin ratio approachto compute the number of shows needed each year to earn a profit of $5,687,500. Is this profit goal realistic? Give your reasoninq. 4. Prepare England Productions' contribution margin income statement for 175 shows performed in 2018. Repo only two categories of costs: variable and fied Solution: Requirement 1 show 1.300 ti Variable cost per show Requirement 2 Requirement 3 Contribution margin ratio Required sales in dollars Required sales in units Requirement 3 Lontribution margin ratio Required sales in dollars Required sales in unit Requirement 4 ENGLAND PRODUCTIONS Contribution Margin Income Statement For the Year Ending December 31, 2018