Accounting A traveling production of Fiddler on the Roof performs each year.The average show sells 1,200 tickets at $55 a ticket. There are 115shows each year. The show has a cast of 60, each earning an averageof $320 per show. The cast is paid only after each show. The othervariable expense is program printing costs of $9 per guest. Annualfixed expenses total $1,224,000.Requirements:Compute revenue and variable expenses for each show.

Step 1: Define Variable ExpenseVariable expenses which are also known as variable cost are total…

Answered: A traveling production of Fiddler on…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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A traveling production of The Lion KingThe Lion King performs each year. The average show sells 1 comma 2001,200 tickets at $ 50 per ticket. There are 125 shows each year. The show has a cast of 60, each earning an average of $ 320 per show. The cast is paid only after each show. The other variable expense is program printing costs of $ 8 per guest. Annual fixed expenses total $ 1,185,600 1. Compute revenue and variable expenses for each show. 2. Use the income statement equation approach to compute the number of shows needed annually to breakeven. 3. Use the shortcut unit contribution margin approach to compute the number of shows needed annually to earn a profit of $3,369,600 Is this goal realistic? Give your reason. 4. Prepare The Lion KingThe Lion King's contribution margin income statement for 125 shows each year. Report only two categories of expenses: variable and fixed.
The Hartford Symphony Guild is planning its annual dinner-dance. The dinner-dance committee has assembled the following expected costs for the event: Dinner (per person) $ 30 Favors and program (per person) $ 3 Band $ 1,260 Rental of ballroom $ 630 Professional entertainment during intermission $ 1,260 Tickets and advertising $ 3,150 The committee members would like to charge $54 per person for the evening’s activities. Required: 1. What is the break-even point for the dinner-dance (in terms of the number of persons who must attend)? 2. Assume that last year only 200 persons attended the dinner-dance. If the same number attend this year, what price per ticket must be charged in order to break even? (Round your answer to the nearest whole dollar amount.)
The Hartford Symphony Guild is planning its annual dinner-dance. The dinner-dance committee has assembled the following expected costs for the event: Dinner (per person) $ 11 Favors and program (per person) $ 2 Band $ 1,140 Rental of ballroom $ 570 Professional entertainment during intermission $ 760 Tickets and advertising $ 1,330 The committee members would like to charge $32 per person for the evening’s activities. Required: 1. What is the break-even point for the dinner-dance (in terms of the number of persons who must attend)? 2. Assume that last year only 100 persons attended the dinner-dance. If the same number attend this year, what price per ticket must be charged in order to break even? (Round your intermediate calculations and final answer to the nearest whole dollar amount.)
Tutor, Incorporated (TI) provides instructional services to its customers. TI charges $240 per student. The Company expects to serve 700 students during the coming year. All of the Company's expenses are fixed. Total annual fixed costs are projected to be $80,000. If the estimated number of students decreases by 10%, net income will
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Lalia rents 110,000 square feet of store space for $358,000 per year. The amount of square footage by department is shown below: Department A 45,000 square feet Department B 30,000 square feet Department C 18,000 square feet Department D 17,000 square feet Help allocate the annual rent expense among the four departments on the basis of relative square feet of floor space occupied.
Magic Realm, Incorporated, has developed a new fantasy board game. The company sold 60,000 games last year at a selling price of $60 per game. Fixed expenses associated with the game total $1,100,000 per year, and variable expenses are $40 per game. Production of the game is entrusted to a printing contractor. Variable expenses consist mostly of payments to this contractor. Required: 1-a. Prepare a contribution format income statement for the game last year.
Magic Realm, Incorporated, has developed a new fantasy board game. The company sold 55,800 games last year at a selling price of $62 per game. Fixed expenses associated with the game total $1,023,000 per year, and variable expenses are $42 per game. Production of the game is entrusted to a printing contractor. Variable expenses consist mostly of payments to this contractor. Required: 1-a. Prepare a contribution format income statement for the game last year. 1-b. Compute the degree of operating leverage. 2. Management is confident that the company can sell 70,308 games next year (an increase of 14,508 games, or 26%, over last year). Given this assumption: a. What is the expected percentage increase in net operating income for next year? b. What is the expected amount of net operating income for next year? (Do not prepare an income statement; use the degree of operating leverage to compute your answer.)
Resling Travel offers helicopter service from suburban towns to John F. Kennedy International Airport in New York City. Each of its six helicopters makes between 1,300 and 2,300 round-trips per year. The records indicate that a helicopter that has made 1,300 round-trips in the year incurs an average operating cost of $600 per round-trip, and one that has made 2,300 round-trips in the year incurs an average operating cost of $450 per round-trip. Read the requirements. Requirement 1. Using the high-low method, estimate the linear relationship y = a +bX, where y is the total annual operating cost of a helicopter and X is the number of round-trips it makes to JFK airport during the year. Requirements 1. Using the high-low method, estimate the linear relationship y= a +bX, where y is the total annual operating cost of a helicopter and X is the number of round-trips it makes to JFK airport during the year. Give examples of costs that would be included in a and in b. 2. 3. If Resling Travel…
Magic Realm, Incorporated, has developed a new fantasy board game. The company sold 26,400 games last year at a selling price of $64 per game. Fixed expenses associated with the game total $440,000 per year, and varlable expenses are $44 per game. Production of the game is entrusted to a printing contractor. Varlable expenses consist mostly of payments to this contractor. Required: 1-a. Prepare a contribution format Income statement for the game last year. 1-b. Compute the degree of operating leverage. 2 Management is confident that the company can sell 33,792 games next year (an increase of 7,392 games, or 28%, over last year). Glven this assumption: a. What is the expected percentage Increase In net operating Income for next year? b. What Is the expected amount of net operating Income for next year? (Do not prepare an Income statement; use the degree of operating leverage to compute your answer.) Complete this question by entering your answers in the tabs below. Req 1A Req 1B Req 2…
Magic Realm, Incorporated, has developed a new fantasy board game. The company sold 26,400 games last year at a selling price of $64 per game. Fixed expenses associated with the game total $440,000 per year, and varlable expenses are $44 per game. Production of the game is entrusted to a printing contractor. Varlable expenses consist mostly of payments to this contractor. Required: 1-a. Prepare a contribution format Income statement for the game last year. 1-b. Compute the degree of operating leverage. 2. Management is confident that the company can sell 33,792 games next year (an Increase of 7,392 games, or 28%, over last year). Given this assumption: a. What is the expected percentage Increase In net operating Income for next year? b. What Is the expected amount of net operating Income for next year? (Do not prepare an Income statement; use the degree of operating leverage to compute your answer.) Complete this question by entering your answers in the tabs below. Req 1A Req 1B Req 2…
The Cullumber Acres Inn is trying to determine its break-even point during its off-peak season. The inn has 50 rooms that it rents at $100 a night. Operating costs are as follows: Salaries $7,500 per month Utilities $1,000 per month Depreciation $1,100 per month Maintenance $2,940 per month Maid service $24 per room Other costs $46 per room Determine the inn’s break-even point in number of rented rooms per month. Break-even point enter the break-even point in number of rented rooms rooms Determine the inn’s break-even point in dollars. Break-even point in $enter the break-even point in dollars

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