ACC 202-20102-Green Productions performs London shows

ACC 202-20102-Green Productions performs London shows

Question # 00548702 Posted By: rey_writer Updated on: 06/19/2017 02:43 AM Due on: 06/19/2017
Subject Accounting Topic Accounting Tutorials:
Question
Dot Image
Green Productions performs London shows. The average show sells 1,300 tickets at $60 per ticket. There are 175 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 program-printing cost of $8 per guest. Annual fixed costs total $728,000.


Requirements:

  1. Compute revenue and variable costs for each show.
  2. Use the equation approach to compute the number of shows Green 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 Green Production’s contribution margin income statement for 175 shows performed in 2016. Report only two categories of costs: variable and fixed.
Dot Image
Report this Question as Inappropriate
Tutorials for this Question
  1. rey_writer
    Tutorial # 00545915 Posted By: rey_writer Posted on: 06/19/2017 02:43 AM
    Puchased By: 3
    Tutorial Preview
    The solution of ACC 202-20102-Green Productions performs London shows...
      Get the Solution
    Attachments
    Answer.xlsx (10.22 KB)
  Get the Solution

Great! We have found the solution of this question!

Related Questions and Answers

Whatsapp Lisa