Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. queen productions performs london shows. the avera

Queen Productions performs London shows. The average show sells 1,000 tickets at $60 per ticket....

50.1K

Verified Solution

Question

Accounting

imageimage

Queen Productions performs London shows. The average show sells 1,000 tickets at $60 per ticket. There are 170 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 $320 per show. The cast is paid after each show. The other variable cost is program-printing cot of S8 per guest. Annual fixed costs total $459,200 Requirements 1. Compute revenue and variable costs for each show. 2. Use the equation approach to compute the number of shows Queen Productions must perform each year to break even 3. Use the contribution margin ratio approach to compute the number of shows needed each year to earn a profit of $4,264,000. Is this profit goal realistic? Give your reasoning 4. Prepare Queen Productions's contribution margin income statement for 170 shows performed in 2016. Report only two categories of costs: variable and fixed

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students