Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please help ASAP!! Tower Productions perlarms London shows. The avenge show selts 1,100 tickets at $70 per tcket. There are 150 shows per year. No

Please help ASAP!!
image text in transcribed
image text in transcribed
Tower Productions perlarms London shows. The avenge show selts 1,100 tickets at $70 per tcket. There are 150 shows per year. No addeconal shows can be held as the theater is also used by other production comparien. The aversge show has a cast of 45 , each eaening a net average of $310 per shew. The cast is pald afler egch ahow. The other variable cost is a programprinting cost of $13 per guest. Annual food costs lotal $487,500 Read the requirements Requirement 1. Compute revenue and variable costs for each show. Select the formuls and enter the amourta to compute sales revemue for each show. = Sales tevenue per show Select the foemula and enter the amounts to compute variable costs for each show. Compute the variable costs per show for each cost separabely, and town compule the total variable costs per show Aequirement 2. Use the equation approach to compute the number of thews Tower Productons must perform each year so break even. Frit, seiect the formula to compute the requred sales in unts to break even. Rearmange the formula you determined above and compute the required number of thows to break even. The number of shows needed annialy to break even is Requibement 3. Use the contrbution margin rato appenach to compute the number of thom neoded each year to earn a proff of $5,750,000. (Rownd contrbusion rato to two decimal places. Is this prodit poal realisfe? Give your reasoning. Begin by thowing the formula and then entering the amounts to cakculate the required saies dolars to eam a proft of $5,750,000, (Round the required sales in dolars to the neareat whole dilar. Round amourts in tee formula to two decmal places, X X XC. Abbreviaton used: CM = contrbution margin) Tower Productions perorms London shows. The averoge shew sells 1,100 sckets at $70 per ticket. There are 150 shows per year. No addtional shows can be held as the theater is also used by other production companies. The average show has a cast of 45 , each eaming a net average of $310 per show. The cast is paid ater each show, The ceher variable cost is a program-penting cost of $13 per guest. Annual fixed costs total $487,500 Read the reguirements. Begin by showing the formula and then enloring the amounts to calculate the roquired sales dollant to earn a peofit of $5,750,000. (Round the fequired sales in dollars to the nearest whole dollac. Round amounts in the formula to two decimal places, XOCXX. Abbreviation used: CM= contribution margin) Now use the information given and the required sales in dolars computed in the previous step to dotormine the required number of shows needed each year to earn a proft of 55,750,000. (Round your arswer top to the nearest whale number) The number of shows needed annualy to eam a profit of $5,750,000 is is this profl goal realistic? Give your reasoning The profi goal of $5,750,000 is since Tower Productians currently performs 150 shows a year. Requirement 4. Prepare Tower Productions' contrbution margin incone statement for 150 shows performed in the year. Peport cnly two categones of costs: varable and fxed. Tower Productions perlarms London shows. The avenge show selts 1,100 tickets at $70 per tcket. There are 150 shows per year. No addeconal shows can be held as the theater is also used by other production comparien. The aversge show has a cast of 45 , each eaening a net average of $310 per shew. The cast is pald afler egch ahow. The other variable cost is a programprinting cost of $13 per guest. Annual food costs lotal $487,500 Read the requirements Requirement 1. Compute revenue and variable costs for each show. Select the formuls and enter the amourta to compute sales revemue for each show. = Sales tevenue per show Select the foemula and enter the amounts to compute variable costs for each show. Compute the variable costs per show for each cost separabely, and town compule the total variable costs per show Aequirement 2. Use the equation approach to compute the number of thews Tower Productons must perform each year so break even. Frit, seiect the formula to compute the requred sales in unts to break even. Rearmange the formula you determined above and compute the required number of thows to break even. The number of shows needed annialy to break even is Requibement 3. Use the contrbution margin rato appenach to compute the number of thom neoded each year to earn a proff of $5,750,000. (Rownd contrbusion rato to two decimal places. Is this prodit poal realisfe? Give your reasoning. Begin by thowing the formula and then entering the amounts to cakculate the required saies dolars to eam a proft of $5,750,000, (Round the required sales in dolars to the neareat whole dilar. Round amourts in tee formula to two decmal places, X X XC. Abbreviaton used: CM = contrbution margin) Tower Productions perorms London shows. The averoge shew sells 1,100 sckets at $70 per ticket. There are 150 shows per year. No addtional shows can be held as the theater is also used by other production companies. The average show has a cast of 45 , each eaming a net average of $310 per show. The cast is paid ater each show, The ceher variable cost is a program-penting cost of $13 per guest. Annual fixed costs total $487,500 Read the reguirements. Begin by showing the formula and then enloring the amounts to calculate the roquired sales dollant to earn a peofit of $5,750,000. (Round the fequired sales in dollars to the nearest whole dollac. Round amounts in the formula to two decimal places, XOCXX. Abbreviation used: CM= contribution margin) Now use the information given and the required sales in dolars computed in the previous step to dotormine the required number of shows needed each year to earn a proft of 55,750,000. (Round your arswer top to the nearest whale number) The number of shows needed annualy to eam a profit of $5,750,000 is is this profl goal realistic? Give your reasoning The profi goal of $5,750,000 is since Tower Productians currently performs 150 shows a year. Requirement 4. Prepare Tower Productions' contrbution margin incone statement for 150 shows performed in the year. Peport cnly two categones of costs: varable and fxed

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

Management Accounting For Decision Makers

Authors: Dr Peter Atrill, Eddie McLaney

6th Edition

0273731521, 9780273731528

More Books

Students also viewed these Accounting questions

Question

Why is persistence important? (p. 211)

Answered: 1 week ago