The cost formulas provide numbers for the average cost per production and average cost per performance. How accurate do you believe average cost per production and average cost per performance would be for predicting the cost of a new production? Fully explain your opinion.

How accurate do you believe average cost per production and average cost per performance would be for predicting the cost if an additional performance of a particular production is added? Fully explain your opinion. Identify any variables that would influence the numbers.

The Little Theatre Flexible Budget Performance Report For The Year Ended December 31 Actual results Flexible budget Spending variances Activity variances Planning budget Number of productions 168 168 Number of performances $453,700 $50,500 $144,000 $259,200 Actors and directors wages $403,200 ($259,200/108*168) 115,700 Stagehands wages 1,900 F 117,600 (75,600/108*168) 42,000 75,600 95,900 3,500 u 92,400 (59,400/108*168) 33,000 59,400 Ticket booth personnel and ushers wages 132,600 3,800 U 18,400 110,400 Scenery, costumes and props 128,800 (110,400/6*7) 140,000 11,200 F Theatre hall rent 151,200 (97,200/108*168) 54,000 97,200 Printed programs 100,300 8,900 F 109,200 (70,200/108*168) 39,000 70,200 Publicity 19,100 4,700 F 16,800 (14.400/6*7) 2,400 14,400 107,500 Administrative expenses 14,140 93,360 6,960 U86,400 Total $1,164,800 $54,640 $1,112,560 $339,760 $772,800