The Munchkin Theater is a nonprofit organization devoted to staging plays for children. The theater has a very small full-time professional administrative staff. Through a special arrangement with the actors union, actors and directors rehearse without pay and are paid only for actual performances. The costs from the current year's planning budget appear below. The Munchkin Theater had tenta- tively planned to put on five different productions with a total of 60 performances. For example, one of the productions was Peter Rabbit, which had five performances. 34 35 36 37 38 39 40 41 The Munchkin Theater Costs from the Planning Budget For the Year Ended December 31 Budgeted number of productions... Budgeted number of performances 5 60 Actors' and directors' wages. $144,000 Stagehands' wages.. 27,000 Ticket booth personnel and ushers' wages 10,800 Scenery, costumes, and props 43,000 Theater hall rent 45,000 Printed programs 10,500 Publicity 13,000 Administrative expenses 43,200 Total..... $336,500 Some of the costs vary with the number of productions, some with the number of performances, and some are fixed and depend on neither the number of productions nor the number of performances. The costs of scenery, costumes, props, and publicity vary with the number of productions. It doesn't make any difference how many times Peter Rabbit is performed, the cost of the scenery is the same. Likewise, the cost of publicizing a play with posters and radio commercials is the same whether there are 10, 20, or 30 performances of the play. On the other hand, the wages of the actors, directors, stagehands, ticket booth personnel, and ushers vary with the number of performances. The greater the number of performances, the higher the wage costs will be. Similarly, the costs of renting the hall and printing the programs will vary with the number of performances. Administrative expenses are more difficult to pin down, but the best esti- mate is that approximately 75% of the budgeted costs are fixed, 15% depend on the number of productions staged, and the remaining 10% depend on the number of performances. After the beginning of the year, the board of directors of the theater authorized changing the theater's program to four productions and a total of 64 performances. Actual costs were higher than the costs from the planning budget. (Grants from donors and ticket sales were also correspondingly higher, but are not shown here.) Data concerning the actual costs appear below: The Munchkin Theater Actual Costs For the Year Ended December 31 Actual number of productions. 4 Actual number of performances 64 Actors' and directors' wages. $148,000 Stagehands' wages. 28,600 Ticket booth personnel and ushers' wages. 12,300 Scenery, costumes, and props 39,300 Theater hall rent 49,600 Printed programs 10,950 Publicity Total 12,000 Administrative expenses. 41,650 $342,400