Question

Please answer all of the following requirements. thanks.

Green Productions performs London shows. The average show sells 900 tickets at $65 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 55, each earning a net average of $330 per show. The cast is paid after each show. The other variable cost is a program-printing cost of $9 per guest. Annual fixed costs total $680,500. Read the requirements 1 -

Answer 1

Solution: 1 Revenue for each show (900 x $65) 58,500 Variable cost for each show Cost of performers (55 x $330) Program printing cost (900 x $9) Total variable cost 18,150 8,100 $ 26,250 Revenue $58,500 $26,250 $32,250 Less: Variable cost Contribution margin Break - Even sales (shows) = Fixed cost / Contribution margin Break - Even sales (shows) = $580,500 / $32,250 Break - Even sales (shows) = 18. Number of shows = (Fixed cost + Net income) / Contribution margin per show Number of shows = ($580,500 + $4,128,000) / $32,250 Number of shows = 146. Per show Annual @155 shows Tickets Per Ticket 900 Particulars Total Total Shows 155 $9,067,500 $65 $58,500 Revenue Variable cost Cost of performers Program printing cost Contribution margin Fixed cost Net income 155 $2,813,250 155 $1,255,500 $4,998,750 $580,500 $4,418,250 $330 $9 $18,150 55 $8,100 900 %24