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John has been asked to determine whether the $22.50 cost of tickets for the community dinner theater will allow the group to achieve break-even and whether the 175 seating capacity is adequate. The cost for each performance of a 10-performance run is $2,500.

John has been asked to determine whether the $22.50 cost of tickets for the community dinner theater will allow the group to achieve break-even and whether the 175 seating capacity is adequate. The cost for each performance of a 10-performance run is $2,500.

FINANCIAL ACCOUNTING
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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please do not copy please John has been asked to determine whether the $22.50 cost of tickets for the community dinner theater will allow the group to achieve break-even and whether the 175 seating capacity is adequate The cost for each performance of a 10-performance run is $2,500. The facility rental cost for the entire 10 performances is $10,000 Drinks and parking are extra charges and have their own price and variable costs, as shown below 4 Selling Price (P) Dollar Sales (Sales x P) Percent of sales 6 8 9. Variable Cost (V). Percent Variable Cost (V/P) Contribution 1-(V/P) Sales Contribution Weighted By Precent Sales (Col 5 x Units Col 8) Tickets Drinks Parking $5.00 Total $22 50 $5 00 $10 50 $175 $2 00 0 533 0 650 0 600 450 $5313 0 467 0 350 0 400 175 $3938 175 S875 100 $500 0 558 0.741 0 165 0 094 0 395 0 107 0 056 1.000 123456789
Transcribed Image Text:please do not copy please John has been asked to determine whether the $22.50 cost of tickets for the community dinner theater will allow the group to achieve break-even and whether the 175 seating capacity is adequate The cost for each performance of a 10-performance run is $2,500. The facility rental cost for the entire 10 performances is $10,000 Drinks and parking are extra charges and have their own price and variable costs, as shown below 4 Selling Price (P) Dollar Sales (Sales x P) Percent of sales 6 8 9. Variable Cost (V). Percent Variable Cost (V/P) Contribution 1-(V/P) Sales Contribution Weighted By Precent Sales (Col 5 x Units Col 8) Tickets Drinks Parking $5.00 Total $22 50 $5 00 $10 50 $175 $2 00 0 533 0 650 0 600 450 $5313 0 467 0 350 0 400 175 $3938 175 S875 100 $500 0 558 0.741 0 165 0 094 0 395 0 107 0 056 1.000 123456789
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