I→ Famous Productions performs London shows. The average show sells 1,095 tickets at $45 per ticket. There are 180 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 60, each earning a net average of $240 per show. The cast is paid after each show. The other variable cost is a program-printing cost of $10 per guest. Annual fixed costs total $334,950. Read the requirements. 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. Select the formula and enter the amounts to compute variable costs for each show Compute the variable costs per show for each cost separately, and then compute the total variable costs per show. Variable costs per show 3. Cost of programs Cost of performers Use the equation approach to compute the number of shows Famous 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 $4,350,000 (Round contribution ratio to two decimal places.) Is this profit goal realistic? Give your reasoning 4. Prepare Famous Productions' contribution margin income statement for 180 shows performed in the year. Report only two categories of costs variable and fixed Total variable costs Requirement 2. Use the equation approach to compute the number of shows Famous Productions must perform each year to break even. First, select the formula to compute the required sales in units to break even Target profit Rearrange the formula you determined above and compute the required number of shows to break even. The number of shows needed annually to break even is Print Done - X Requirement 3. Use the contribution margin ratio approach to compute the number of shows needed each year to earn a profit of $4,350,000 (Round contribution ratio to two decimal places.) Is this profit goal realistic? Give your reasoning Begin by showing the formula and then entering the amounts to calculate the required sales dollars to earn a profit of $4,350,000 (Round the required sales in dollars to the nearest whole dollar Round amounts in the formula to two decimal places, XXXX Abbreviation used: CM = contribution margin.) = Required sales in dollars % Now use the information given and the required sales in dollars computed in the previous step to determine the required number of shows needed each year to earn a profit of $4,350,000 (Round your answer up to the nearest whole number) The number of shows needed annually to earn a profit of $4,350,000 is Is this profit goal realistic? Give your reasoning Submit qui 8:38 PM

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Question
I→
Famous Productions performs London shows. The average show sells 1,095 tickets at $45 per ticket. There are 180 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 60, each earning a net average of $240 per show. The
cast is paid after each show. The other variable cost is a program-printing cost of $10 per guest. Annual fixed costs total $334,950.
Read the requirements.
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.
Select the formula and enter the amounts to compute variable costs for each show Compute the variable costs per show for each cost separately, and then compute the total variable costs per show.
Variable costs per show
3.
Cost of programs
Cost of performers
Use the equation approach to compute the number of shows
Famous 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 $4,350,000 (Round contribution ratio to
two decimal places.) Is this profit goal realistic? Give your reasoning
4. Prepare Famous Productions' contribution margin income statement for 180
shows performed in the year. Report only two categories of costs variable
and fixed
Total variable costs
Requirement 2. Use the equation approach to compute the number of shows Famous Productions must perform each year to break even.
First, select the formula to compute the required sales in units to break even
Target profit
Rearrange the formula you determined above and compute the required number of shows to break even.
The number of shows needed annually to break even is
Print
Done
- X
Requirement 3. Use the contribution margin ratio approach to compute the number of shows needed each year to earn a profit of $4,350,000 (Round contribution ratio to two decimal places.) Is this profit goal realistic? Give your reasoning
Begin by showing the formula and then entering the amounts to calculate the required sales dollars to earn a profit of $4,350,000 (Round the required sales in dollars to the nearest whole dollar Round amounts in the formula to two decimal places, XXXX Abbreviation used: CM = contribution margin.)
= Required sales in dollars
%
Now use the information given and the required sales in dollars computed in the previous step to determine the required number of shows needed each year to earn a profit of $4,350,000 (Round your answer up to the nearest whole number)
The number of shows needed annually to earn a profit of $4,350,000 is
Is this profit goal realistic? Give your reasoning
Submit qui
8:38 PM
Transcribed Image Text:I→ Famous Productions performs London shows. The average show sells 1,095 tickets at $45 per ticket. There are 180 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 60, each earning a net average of $240 per show. The cast is paid after each show. The other variable cost is a program-printing cost of $10 per guest. Annual fixed costs total $334,950. Read the requirements. 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. Select the formula and enter the amounts to compute variable costs for each show Compute the variable costs per show for each cost separately, and then compute the total variable costs per show. Variable costs per show 3. Cost of programs Cost of performers Use the equation approach to compute the number of shows Famous 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 $4,350,000 (Round contribution ratio to two decimal places.) Is this profit goal realistic? Give your reasoning 4. Prepare Famous Productions' contribution margin income statement for 180 shows performed in the year. Report only two categories of costs variable and fixed Total variable costs Requirement 2. Use the equation approach to compute the number of shows Famous Productions must perform each year to break even. First, select the formula to compute the required sales in units to break even Target profit Rearrange the formula you determined above and compute the required number of shows to break even. The number of shows needed annually to break even is Print Done - X Requirement 3. Use the contribution margin ratio approach to compute the number of shows needed each year to earn a profit of $4,350,000 (Round contribution ratio to two decimal places.) Is this profit goal realistic? Give your reasoning Begin by showing the formula and then entering the amounts to calculate the required sales dollars to earn a profit of $4,350,000 (Round the required sales in dollars to the nearest whole dollar Round amounts in the formula to two decimal places, XXXX Abbreviation used: CM = contribution margin.) = Required sales in dollars % Now use the information given and the required sales in dollars computed in the previous step to determine the required number of shows needed each year to earn a profit of $4,350,000 (Round your answer up to the nearest whole number) The number of shows needed annually to earn a profit of $4,350,000 is Is this profit goal realistic? Give your reasoning Submit qui 8:38 PM
AI-Generated Solution
AI-generated content may present inaccurate or offensive content that does not represent bartleby’s views.
steps

Unlock instant AI solutions

Tap the button
to generate a solution

Similar questions
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education