The company wanted an annual gross receipt less than $50,000, they borrowed 12,000 INR which is worth $200USD. Their required balance is $2000. On February 1^st, 2017 the checking account had a total of $9,525.32 which gave them a total of $7,525.32 available for future use. It costed $1,630 to rent or use the space on March 31^st, April 1^st and 2^nd also March 30^th. The company also rented a sound system for $300 and spend $200 on miscellaneous sound and lighting expense, also they had to rent a church hall for rehearsal which cost $300. Furnitures were given to the company which would cost them $200 if they had to buy. Also, someone volunteered to put up the decorations which would total $500 if they were to pay. However, they had to rent a van for $500. The company needed to advertise and promote their show and they choose to do so with a local new magazine which cost $150, Foundation TV which cost $150 and Lokyani with a cost of $60. They also wanted to make theatrical posters which would cost $500 if bought and $150 if donated, luckily enough for them someone volunteered. The company also saved $300 on bookkeeping due to volunteers. In their past production the company raised $2,500. There was also a Fixed price of $275 with a local Indian restaurant for 3 days to supply food for the audience also $300 was donated in sandwiches and vegetables from Russo Farms to also help with supplying food. The companies ticket prices were $20 adults, $15 for students and seniors and $5 fee per ticket paid to Black box. However, $17 was the average conservative estimate for ticket prices.

Use the information provided above to prepare a Budgeted Income Statement. Have two main sections titled Receipts and Expenditures. Within the sections, make sure to have sub- categories so that actual costs could be compared with budget subsequently. Proper accounting format with currency should be used.

Using the budget prepared in 1:

Identify each cost as variable or fixed in relation to tickets sold.

In the first case, assume that all funds are to come from ticket sales only and that there are four shows in total. Compute the break-even point in number of tickets to be sold and in dollars.

In the second case, assume the same in a) but only three shows in total. Compute the break-even point in number of tickets to be sold and in dollars.

In the third case, assume that SETU would receive sponsorship funds in addition to ticket sales for four shows. Compute the break-even point in number of tickets to be sold and in dollars.

In the fourth case, assume that SETU would receive sponsorship funds in addition to ticket sales for three shows. Compute the break-even point in number of tickets to be sold and in dollars.

Comment on the feasibility of the required number of ticket sales computed from above, keeping in mind the nature of the play, that it is staged by a community theater organization, and the ethnicity aspect. Provide suggestions to the group about ways to achieve the necessary amount of ticket sales.

Evaluate the importance of opportunity cost:

Define opportunity costs.

Identify and provide the approximate value of resources that were donated by actors and patrons.

Incorporate these opportunity costs and measure its impact on the budgeted income stated in question 1 and the breakeven numbers calculated in question 2.

Extra Question: In light of the added opportunity costs discussed above, what price would SETU have to charge to breakeven for this production if they had to pay for all donated services, assuming they could reach (a) 60% capacity, (b) 80% capacity, (c) 90% capacity.

Template for SETU-Kamala Case. 311 1 9241 7.xlsx Sheet1 0 2 SETU Stage Ensemble Theater Unit, Inc 3 Template for students 4 Kamala-Mosesian Center for the Arts Black Box- March 31,A1,2, 2017 7 Budgeted Receipts for March 31-April 2 production: B RECEIPTS 9 Black Box, net of fee 10 TOTAL Budget EXPENDITURE Blackbox Theater Rental Fee for Manager and Tech Support Rental for rehearsa Stage Decoration and Transportation of dcor Lighting/Sound Brochures etc. Printing Publicity forvarious ads, intrviews, FB ads, etc. Makeup etc Food during four final rehearsals Copyright payment to playwright in Indian Rupees converted to USD Other (misc.) Budget 12 At the Door Ticket sale 13 Cash 14 Check 5 TOTAL s three performances and Snacks and Table Sale 18 Revenue 9 Less: food cost 20 TOTAL 21 22 CASH DONATIONS TOTAL 23 TOTAL BUDGETED RECEIPTS 24 25 26 TOTAL BUDGETED EXPENDITURES TOTAL BUDGETED EXPENDITURES IF OPPORTUNITY COSTS WERE INCLUDED 28 Template for SETU-Kamala Case. 311 1 9241 7.xlsx Sheet1 0 2 SETU Stage Ensemble Theater Unit, Inc 3 Template for students 4 Kamala-Mosesian Center for the Arts Black Box- March 31,A1,2, 2017 7 Budgeted Receipts for March 31-April 2 production: B RECEIPTS 9 Black Box, net of fee 10 TOTAL Budget EXPENDITURE Blackbox Theater Rental Fee for Manager and Tech Support Rental for rehearsa Stage Decoration and Transportation of dcor Lighting/Sound Brochures etc. Printing Publicity forvarious ads, intrviews, FB ads, etc. Makeup etc Food during four final rehearsals Copyright payment to playwright in Indian Rupees converted to USD Other (misc.) Budget 12 At the Door Ticket sale 13 Cash 14 Check 5 TOTAL s three performances and Snacks and Table Sale 18 Revenue 9 Less: food cost 20 TOTAL 21 22 CASH DONATIONS TOTAL 23 TOTAL BUDGETED RECEIPTS 24 25 26 TOTAL BUDGETED EXPENDITURES TOTAL BUDGETED EXPENDITURES IF OPPORTUNITY COSTS WERE INCLUDED 28