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Starlight Theater stages a number of summer musicals at its theater in northern Ohio. Preliminary planning has just begun for the upcoming season, and Starlight
Starlight Theater stages a number of summer musicals at its theater in northern Ohio. Preliminary planning has just begun for the upcoming season, and Starlight has developed the following estimated data Production Number of Performances Average Attendance per Performance Ticket Price Variable Costs Fixed Costs Mr. Wonderful That's Life All that Jazz 222 12 $3,500 $18 20 12 3,000 15 4,000 20 1 Represent payments to production companies and are based on tickets sold $3 $165,000 1 249,000 316,000 2 Costs directly associated with the entire run of each production for costumes, sets and artist fees. Starlight will also incur $565,000 of common fixed operating charges (administrative overhead, facility costs, and advertising) for the entire season, and is subject to a 30% income tax rate. If management desires Mr. Wonderful to produce an after-tax contribution of $210,000 toward the firm's overall operating income for the year, total attendance for the production would have to be: Round answer to a whole number
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