Tower Productions performs London shows. The average show sells 1,300 tickets at $60 per ticket. There are 170 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 65, each eaming a net average of $340 per show. The cast is paid after each show. The other variable cost is a program-printing cost of $8 per quest. Annual fixed costs total $728.000 Read the women Requirement 1. Compute revenue and variable costs for each show. Select the formula and other the amounts to compute sales revenue for each show. - Sales revenue per show Select the formula and enter the amounts to compute variable costs for each show. Compute the variable costs per show for each ost separately, and then compute the lotal variable costs per show Variable costs par show Cost of programs Cost of performers Total variable costs Requirement 2. Use the equation approach to compute the number of shows Tower Productions must perform each year to break even First, select the formula to compute the required sales in units to break even Tower Productions performs London shows. The average show sells 1,300 tickets at $60 per ticket. There are 170 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 65, each eaming a net average of $340 per show. The cast is paid after each show. The other variable cost is a program-printing cost of $8 per guest. Annual fixed costs total $728,000. Read the women Target profit Rearrange the formula you determined above and compute the required number of shows to break even The number of shows needed annually to break even is Requirements. Use the contribution margin ratio approach to compute the number of shows needed each year to eam a profit of $5.687.500. (Round contribution ratio to two decimal places.) is this profit goal realistic? Give your reasoning. Begin by showing the formula and then entering the amounts to calculate the required sales dollars to earn a profit of $5,687,500. (Round the required sales in dollars to the nearest wole dollar, Round amounts in the formula to two decimal places, XX.XX. Abbreviation used: OM contribution margin) - Required sales in dollars % Now use the information given and the required sales in dollars computed in the previous step to determine the required number of shows needed each year to earn a profe of $5,687,500 (Round your answer up to the nearest whole number) The number of shows needed annually to eam a profit of $5,687,500 is Is this profit goal realisti? Give your reasoning The profit goal of $5,687,500 since Tower Productions currently performs 170 shows a year. Requirement 4. Prepare Tower Productions contribution margin income statement for 170 shows performed in the yeur, Report only two categories of costs: variable and fixed Tower Productions Contribution Margin Income Statement Year Ended December 31, 20XX e. Resor Tiny Operating income (Loss)
