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

Tower Productions performs London shows. The average show sells 1,300 tickets at $60 per ticket....

90.2K

Verified Solution

Question

Accounting

image Tower Productions performs London shows. The average show sells 1,300 tickets at $60 per ticket. There are 145 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 65 , each earning a net average of $340 per show. The cast is paid after each show. The other variable cost is a program-printing cos $8 per guest. Annual fixed costs total $728,000. 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. Requirements 1. Compute revenue and variable costs for each show. 2. Use the equation approach to compute the number of shows Tower 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 $5,687,500. Is this profit goal realistic? Give your reasoning. 4. Prepare Tower Productions's contribution margin income statement for 145 shows performed in 2018. 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