General Accounting A traveling production of The Phantom of the Opera performs each year. Onaverage, each show sells 1,500 tickets at $60 per ticket. There are 100 showsannually. The cast consists of 50 members, each earning an average of $400 pershow, with payments made after each performance. Additionally, the showincurs a variable expense of $8 per program for each guest. Annual fixedexpenses total $1,500,000.Requirements:1. Compute the revenue for each show.2. Compute the variable expenses for each show.

Step 1: Define Revenue and Variable ExpensesRevenue is the total income generated from selling goods…

Answered: A traveling production of The Phantom…

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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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.)
Required information Use the following information for the Quick Studies below. (Static) (The following information applies to the questions displayed below) On January 1, the Matthews Band pays $65.800 for sound equipment. The band estimates it will use this equipment for four years and perform 200 concerts. It estimates that after four years it can sell the equipment for $2.000. During the first year, the band performs 45 concerts QS 8-5 (Static) Units-of-production depreciation LO P1 Compute the first year depreciation using the units of production method. Select formula for the depreciation rate of Units of Production Calculate the first year depreciation expense Depreciation per concert Concerts in first year Depreciation in first year
Consider the following tickets purchasing problem. A businessperson has a 5-week. commitment traveling between Fayetteville (FYV) and Denver (DEN). Weekly departure from Fayetteville occurs on Mondays for return on Wednesdays. A regular roundtrip ticket costs $400, but a 20% discount is granted if the roundtrip dates span a weekend. A one-way ticket in either direction costs 75% of the regular price. i In the tickets example, (a) Provide an infeasible alternative. (b) Identify a fourth feasible alternative and determine its cost.
The College is planning a concert. Maximum capacity for the concert venue is 3,000. tickets will be sold for $25 per ticket. The college estimates that costs of producing the concert to be 2,500 plus the cost of the band. Alternative A a fee of $8,000 and $5 per tickets; or Alternative B - $8.00 per ticket sold Question 1. If you expect to see 3,000 tickets, which alternative produces the highest profit?
Roseberg Theater sells tickets for dinner and a show for $60 each. The cost of providing dinner is $31 per ticket and the fixed cost of operating the theater is $65,000 per month. The company can accommodate 15,000 patrons each month. What is the contribution margin ratio? 51.67% 207% 48.33% 40.00%
Planet Airways has been given a 5-year license to start a budget airline between Stardust and Sundown. This service requires two planes which cost $6.5 million each, payable in one year’s time. Each aircraft will make one daily return trip, allowing for 350 flyable days per year. The remaining days of the year will be used to service the planes. The capacity of each plane is 200 passengers and the price per ticket is $550 per return trip. The average passenger load is 80 percent. The carrier’s office building will cost $26 million. Half of this amount is payable now and the balance is to be paid in a year’s time. The aircrafts and the building can be depreciated, for tax purposes, at the rate of 10% per annum of the initial cost. At the end of five years, the salvage values of the planes and the building are $2.6 million per plane and $7.8 million respectively.The operational costs will be $16,000 per one way trip (per flying day) and $6,000 per non-flying day, for each plane. The tax…
The maintenance and operations costs for a piece of equipment are estimated to be $300 the first month and increase by $30 per month over the equipment's 3 year life. For budgeting purposes, the owner wants to set aside a uniform amount each month to cover the maintenance and operations costs of the equipment. If the owner can invest at 4% per year, compounded monthly, what amount should he invest each month? Express your answer in $ to the nearest $10.
Franklin Camps, Incorporated leases the land on which it builds camp sites. Franklin is considering opening a new site on land that requires $2,450 of rental payment per month. The variable cost of providing service is expected to be $6 per camper. The following chart shows the number of campers Franklin expects for the first year of operation of the new site: January February March 150 260 210 February August April 210 Price May 330 June 510 Required Assuming that Franklin wants to earn $7 per camper, determine the price it should charge for a camp site in February and August. Note: Do not round intermediate calculations. July August September October November December Total 660 660 360 390 150 310 4,200
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.
Problem 1c: Consider the following information for Rosebud Lane Hospital. The number of admissions for the year are expected to equal 1000, but could vary from 750 to 1250. Rosebud's fee-for-service is $2,000 under a prospective payment system. Under a capitation reimbursement system, Rosebud must cover 1000 patients at a capitation payment of $2,000. Rosebud's annual fixed costs are $500,000 and it variable cost per admission is $1,500. 1c. Calculate Rosebud's net profit under the Fee For Service Reimbursement method if admissions are 1250. (Answer to the nearest dollar. Do not include the dollar sign in your answer.) 1d. Calculate Rosebud's net profit under Capitation if admissions are 1250. (Answer to the nearest dollar. Do not include the dollar sign in your answer.)
10,000 seat amphitheater has tickets for sale at $45 and $65. How many tickets should be sold at each price for a sellout performance to generate a total revenue of $560,000 ?
Capital University has four departments. Each student takes 10 classes per year, and only takes course in their own faculty. The only sources of revenue are tuition and government grants. The University receives a grant of $10,000 a year for each student. Costs: Item Amount Note Total Salaries 15,500,000 Each professor teaches 6 classes per year and all get paid the same amount. Building Student Support 13,020,000 Each classroom is the same size. 195,000,000 Each student generally requires an equal amount of support and Administration Other 17,000,000 Science labs $10 million, Business trading room $2 million, Engineering labs $5 million Total 240,520,000 Student enrollment: Faculty: Number of classes per year Number of Students in Faculty Science Engineering 150 Arts Business Total 120 198 150 618 4,800 2,000 600 2,700 10,100 In order to break-even, the university estimates that tuition should be $13,814 per student ($240,520,000 in costs divided by 10,100 students, less the…

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