Famous Productions performs London shows. The average show sells 1,300 tickets at $60 per ticket. There are 155 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 earning 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 requirements LOADING... .   Requirement 1. Compute revenue and variable costs for each show.   Select the formula and enter the amounts to compute sales revenue for each show.     ×   = Sales revenue per show   ×   =   Requirements 1. Compute revenue and variable costs for each show. 2. Use the equation approach to compute the number of shows Famous Productions must perform each year to break even. 3. Use the contribution margin ratio approach to compute the number of shows needed each year to earn a profit of $5,687,500. ​(Round contribution ratio to two decimal​ places.) Is this profit goal​ realistic? Give your reasoning. 4. Prepare Famous Productions​' contribution margin income statement for 155 shows performed in the year. Report only two categories of​ costs: variable and fixed

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter3: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 5EB: Cadre, Inc., sells a single product with a selling price of $120 and variable costs per unit of $90....
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Famous Productions
performs London shows. The average show sells
1,300
tickets at
$60
per ticket. There are
155
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 earning 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
requirements
LOADING...
.
 
Requirement 1. Compute revenue and variable costs for each show.
 
Select the formula and enter the amounts to compute sales revenue for each show.
 
 
×
 
=
Sales revenue per show
 
×
 
=
 
Requirements
1.
Compute revenue and variable costs for each show.
2.
Use the equation approach to compute the number of shows
Famous Productions
must perform each year to break even.
3.
Use the contribution margin ratio approach to compute the number of shows needed each year to earn a profit of
$5,687,500.
​(Round contribution ratio to two decimal​ places.) Is this profit goal​ realistic? Give your reasoning.
4.
Prepare
Famous Productions​'
contribution margin income statement for
155
shows performed in the year. Report only two categories of​ costs: variable and fixed.
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