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 perPerformance

Ticket Price

Variable Costs1

Fixed Costs2

Mr. Wonderful

12

3,500

$18

$3

$165,000

That's Life

20

3,000

15

1

249,000

All That Jazz

12

4,000

20

0

316,000

1

Represent payments to production companies and are based on tickets sold.

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.

Question

If Starlight's 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

• A.
• 20,800
• B.
• 31,000
• C.
• 25,000
• D.
• 25,833