A traveling production of Wicked performs each year. The average show sells 1,400 tickets at $ 65 per ticket. There are 100 shows a year. The show has a cast of 65, each earning an average of $ 320 per show. The cast is paid only after each show. The other variable expense is program printing expenses of $ 6 per guest. Annual fixed expenses total $ 2,163,000.

1. Compute revenue and variable expenses for each show.
2. Compute the number of shows needed annually to breakeven.
3. Compute the number of shows needed annually to earn a profit of $ 3,708,000. Is this goal realistic? Give your reason.
4. Prepare Wicked’s contribution margin income statement for 100 shows each year. ­Report only two categories of expenses: variable and fixed.

  • CreatedAugust 27, 2014
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