Amazing Productions performs London shows. The average showsells 1,000 tickets at $60 per ticket....

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Accounting

Amazing Productions performs London shows. The average showsells 1,000 tickets at $60 per ticket. There are 120 shows peryear. No additional shows can be held as the theater is also usedby other production companies. The average show has a cast of 60,each earning a net average of $320 per show. The cast is paid aftereach show. The other variable cost is program-printing cost of $8per guest. Annual fixed costs total $459,200.
1)Compute revenue and variable costs for each show.
2)Use the equation approach to compute the number of showsAmazing Productions must perform each year to break even.
3)Use the contribution margin ratio approach to compute thenumber of shows needed each year to earn a profit of $4,264,000. Isthis profit goal realistic? Give your reasoning.
4)Prepare Amazing Production's contribution margin incomestatement for 120 shows performed in 2016. Report only twocategories of costs: variable and fixed.

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Answer to Q1 Revenue Per Show Tickets Price per ticket 100060 60000 Variable Cost per Show Number of Cast Average Earning 60320 19200 Other Variable Cost per show Number of Tickets Printing per ticket 10008 8000 Total Variable See Answer

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In: AccountingAmazing Productions performs London shows. The average showsells 1,000 tickets at $60 per ticket. There...Amazing Productions performs London shows. The average showsells 1,000 tickets at $60 per ticket. There are 120 shows peryear. No additional shows can be held as the theater is also usedby other production companies. The average show has a cast of 60,each earning a net average of $320 per show. The cast is paid aftereach show. The other variable cost is program-printing cost of $8per guest. Annual fixed costs total $459,200.1)Compute revenue and variable costs for each show.2)Use the equation approach to compute the number of showsAmazing Productions must perform each year to break even.3)Use the contribution margin ratio approach to compute thenumber of shows needed each year to earn a profit of $4,264,000. Isthis profit goal realistic? Give your reasoning.4)Prepare Amazing Production's contribution margin incomestatement for 120 shows performed in 2016. Report only twocategories of costs: variable and fixed.