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City Productions performs London shows. The average show sells 1,430 tickets at $55 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 50, each earning a net average of $350 per show. The cast is paid after each show. The other variable cost is a program-printing cost of $11 per guest. Annual fixed costs total $999,240. Read the requirements. Requirements 1. 2. 3. Compute revenue and variable costs for each show. Use the equation approach to compute the number of shows City Productions must perform each year to break even. Use the contribution margin ratio approach to compute the number of shows needed each year to earn a profit of $5,750,000. (Round contribution ratio to two decimal places.) Is this profit goal realistic? Give your reasoning. 4. Prepare City Productions' contribution margin income statement for 170 shows performed in the year. Report only two categories of costs: variable and fixed. - X Print Done le costs per show for each cost separately, and then compute the total variable costs per show. osts per show rform each year to break even. Rearrange the formula you determined above and compute the required number of shows to break even. Target profit

City Productions performs London shows. The average show sells 1,430 tickets at $55 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 50, each earning a net average of $350 per show. The cast is paid after each show. The other variable cost is a program-printing cost of $11 per guest. Annual fixed costs total $999,240. Read the requirements. Requirements 1. 2. 3. Compute revenue and variable costs for each show. Use the equation approach to compute the number of shows City Productions must perform each year to break even. Use the contribution margin ratio approach to compute the number of shows needed each year to earn a profit of $5,750,000. (Round contribution ratio to two decimal places.) Is this profit goal realistic? Give your reasoning. 4. Prepare City Productions' contribution margin income statement for 170 shows performed in the year. Report only two categories of costs: variable and fixed. - X Print Done le costs per show for each cost separately, and then compute the total variable costs per show. osts per show rform each year to break even. Rearrange the formula you determined above and compute the required number of shows to break even. Target profit

Principles of Accounting Volume 2
Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter10: Short-term Decision Making
Section: Chapter Questions
Problem 4EB: Dimitri Designs has capacity to produce 30,000 desk chairs per year and is currently selling all...
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City Productions performs London shows. The average show sells 1,430 tickets at $55 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 50, each earning a net average of $350 per show. The cast is paid after each show. The other variable cost is a program-printing cost of $11 per guest. Annual fixed costs total $999,240. Read the requirements. Requirements 1. 2. 3. Compute revenue and variable costs for each show. Use the equation approach to compute the number of shows City Productions must perform each year to break even. Use the contribution margin ratio approach to compute the number of shows needed each year to earn a profit of $5,750,000. (Round contribution ratio to two decimal places.) Is this profit goal realistic? Give your reasoning. 4. Prepare City Productions' contribution margin income statement for 170 shows performed in the year. Report only two categories of costs: variable and fixed. - X Print Done le costs per show for each cost separately, and then compute the total variable costs per show. osts per show rform each year to break even. Rearrange the formula you determined above and compute the required number of shows to break even. Target profit
Transcribed Image Text:City Productions performs London shows. The average show sells 1,430 tickets at $55 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 50, each earning a net average of $350 per show. The cast is paid after each show. The other variable cost is a program-printing cost of $11 per guest. Annual fixed costs total $999,240. Read the requirements. Requirements 1. 2. 3. Compute revenue and variable costs for each show. Use the equation approach to compute the number of shows City Productions must perform each year to break even. Use the contribution margin ratio approach to compute the number of shows needed each year to earn a profit of $5,750,000. (Round contribution ratio to two decimal places.) Is this profit goal realistic? Give your reasoning. 4. Prepare City Productions' contribution margin income statement for 170 shows performed in the year. Report only two categories of costs: variable and fixed. - X Print Done le costs per show for each cost separately, and then compute the total variable costs per show. osts per show rform each year to break even. Rearrange the formula you determined above and compute the required number of shows to break even. Target profit
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