answer please . On March 3, 2008, a revival of Gypsy, the Stephen Sondheim musical, opened at the St. James Theater in New York. Ticket prices rangedfrom $117 to $42 per seat. The show's weekly gross revenues, operating costs, and profit were estimated as follows, depending on whetherthe average ticket price was $75 or $65.Average Price of $75 Average Price of $65$680,000Gross revenues $765,000Operating costs $600,000Profit$165,000$600,000$80,000With a cast of 71 people, a 30-piece orchestra, and more than 500 costumes, Gypsy cost more than $10 million to stage. This investmentwas in addition to the operating costs (such as salaries and theater rent). How many weeks would it take before the investors got theirmoney back, according to these estimates, if the average price was $65? If it was $75?

To determine how many weeks it would take for investors to recoup their $10 million investment based…

Answered: On March 3, 2008, a revival of Gypsy,…

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter6: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 4MAD

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On March 3, 2008, a revival of Gypsy, the Stephen Sondheim musical, opened at the St. James Theater in New York. Ticket prices ranged from $117 to $42 per seat. The show’s weekly gross revenues, operating costs, and profit were estimated as follows, depending on whether the average ticket price was $75 or $65 Requirements a. With a cast of 71 people, a 30-piece orchestra, and more than 500 costumes, Gypsy cost more than $10 million to stage. This investment was in addition to the operating costs (such as salaries and theater rent). How many weeks would it take before the investors got their money back, according to these estimates, if the average price was $65? If it was $75? b. George Wachtel, director of research for the League of American Theaters and Producers, has said that about one in three shows opening on Broadway in recent years has at least broken even. Were the investors in Gypsy taking a substantial risk? c. According to one Broadway producer, “Broadway isn’t where you…
A 6000-seat theater has tickets for sale at $25 and $40. How many tickets should be sold at each price for a sellout performance to generate a total revenue of $172,500? The number of tickets for sale at $25 should be
Calculate earned revenues Kirkland Theater sells season tickets for six events at a price of $180. In pricing the tickets, the planners assigned the leadoff event a value of $45 because the program was an expensive symphony orchestra. The last five events were priced equally; 1,500 season tickets were sold for the 2016 season.Required:a. Calculate the theater’s earned revenue after the first three events have been presented.b. About 95% of the season ticket holders attended the first event. Subsequent events were attended by about 80% of the season ticket holders. To what extent, if any, should the attendance data impact revenue recognition? Explain 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 ?
Calculate earned revenues Kirkland Theater sells season tickets for six events at a price of $240. In pricing the tickets, the planners assigned the leadoff event a value of $60 because the program was an expensive symphony orchestra. The last five events were priced equally; 1,500 season tickets were sold for the 2013 season. 2013 Required: Calculate the theater's earned revenue after the first three events have been presented. b. About 95% of the season ticket holders attended the first event. Subsequent events were attended by about 80% of the season ticket holders. To what extent, if any, should the attendance data impact revenue recognition? Explain your answer. а.
A theater charges $8 for main-floor seats and $5 for balcony seats. If all seats are sold, the ticket income is $3700. At one show, 25% of the main-floor seats and 40% of the balcony seats were sold and ticket income was $1000. How many seats are on the main floor and how many are in the balcony? There are 650 seats on the main-floor and 230 seats in the balcony. (Type whole numbers.)
A merchandiser plans to sell 12,100 units next month at a selling price of $110 per unit. It also gathered the following cost estimates for next month: Cost Cost of goods sold Advertising expense Depreciation expense Shipping expense Administrative salaries Sales commissions Insurance expense Cost Formula $60 per unit sold. $150,000 per month $70,000 per month. $100,000 per month +$10 per unit sold $50,000 per month. 5% of sales $15,000 per month What is the estimated total contribution margin for next month?
A local theater company sells 1,000 season ticket packages at a price of $255 per package. The first show in the ten-show season starts this week. (a) The sale of the season tickets before the first show. (b) The revenue earned after putting on the first show.
A traveling production of The Lion KingThe Lion King performs each year. The average show sells 1 comma 2001,200 tickets at $ 50 per ticket. There are 125 shows each year. The show has a cast of 60, each earning an average of $ 320 per show. The cast is paid only after each show. The other variable expense is program printing costs of $ 8 per guest. Annual fixed expenses total $ 1,185,600 1. Compute revenue and variable expenses for each show. 2. Use the income statement equation approach to compute the number of shows needed annually to breakeven. 3. Use the shortcut unit contribution margin approach to compute the number of shows needed annually to earn a profit of $3,369,600 Is this goal realistic? Give your reason. 4. Prepare The Lion KingThe Lion King's contribution margin income statement for 125 shows each year. Report only two categories of expenses: variable and fixed.
S=1
Dinesh
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…

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