Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The average show sell 900 tickets at $65 per ticket. there are 155 shows per year. No additional shows can be held as the theater

The average show sell 900 tickets at $65 per ticket. there are 155 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 program printing vcst of $9 per guest. Annual fixed costs are $580,500. 1. compute the number of shows that must be perform to break even. 2. compute the number of shows needed each year to earn a profit of $4,128,000. Is this profit goal realistic? give your reasoning. 3. prepare a contribution margin income statement for 155 shows performed. report only two categories of costs: variable and fixed

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

Fundamentals of Financial Accounting

Authors: Fred Phillips, Robert Libby, Patricia Libby, Brandy Mackintosh

5th Canadian edition

1259269868, 978-1259269868

More Books

Students also viewed these Accounting questions

Question

Annoyance about a statement that has been made by somebody

Answered: 1 week ago