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You own an outdoor theatre, putting on shows (in the summer). Financial information for the 2022 season is below: Total fixed costs: $1,800,000 Variable costs
You own an outdoor theatre, putting on shows (in the summer). Financial information for the 2022 season is below: Total fixed costs: $1,800,000 Variable costs per (admission) ticket sold: $6 Ticket sales: 60,000 tickets Ticket price: $30 per ticket Other revenues: None The following is predicted for the 2023 season: Ticket price (per ticket) will increase by $6 in 2023 Variable cost (per ticket) will decrease by $1.50 (more using the app for tickets) in 2023 Fixed costs will increase by $100,000 for ticket app development and maintenance. The only other changes for 2023 are indicated specifically for you below (use only yours!): Sylvia: $110,000 increase in advertising will result in a 10% increase in tickets sold Marco: $120,000 increase in advertising will result in a 15% increase in tickets sold Julia: $130,000 increase in advertising will result in a 20% increase in tickets sold Nick: $140,000 increase in advertising will result in a 25% increase in tickets sold Jennifer: $150,000 increase in advertising will result in a 40% increase in tickets sold Andres: $170,000 increase in advertising will result in a 50% increase in tickets sold Prepare (in the box below) a 2023 Contribution Format Income Statement
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