Question
The Theatre Company (TC) stages 13 plays each season. Estimates of revenues and costs for all productions are as follows. Revenue per ticket Price $
The Theatre Company (TC) stages 13 plays each season. Estimates of revenues and costs for all productions are as follows.
Revenue per ticket | |
Price | $ 90.00 |
Variable costs per ticket | |
Royalties | $ 17.00 |
Theatre rental | $ 14.50 |
Fixed costs of the plays | |
Creative | $ 434,100 |
Pre - Production | $ 127,500 |
Required: Please calculate the following. All calculations to 2 dpi.
21(a) Calculate the unit contribution margin (2 marks)
21(b) Calculate the contribution margin ratio (2 marks)
21(c) Calculate the number of tickets that must be sold to break even. Round to whole numbers. (2 marks)
21(d) Calculate the total dollar ($) value for TC to break even (2 marks)
21(e) In previous years TC has sold 12100 tickets over the theatre season. If in 2023 TC sells 12100 tickets, how much profit will be made?? Round to whole dollars ($) (3 marks)
21(f) If TC do sell 12100 tickets, what is the margin of safety in tickets? (2 marks)
21(g) If TC want $210000 in after tax profit, how much total revenue in $ will need to be earned? Round to whole dollars ($) (2 marks)
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