British Productions_CVP Analysis
1. Compute revenue and variable costs for each show.
2. Use the income statement and equation approach to compute the number of shows British Productions must perform each year to break even.
3. Use the contribution margin approach to compute the number of shows needed each year to earn a profit of $4,128,000. Is this profit goal realistic? Give your reasoning.
4. Prepare British Productions’ contribution margin income statement for 155 shows performed in 2012. Report only two categories of costs: variable and fixed.