# Question: England Productions performs London shows The average show sells 1 300

England Productions performs London shows. The average show sells 1,300 tickets at $ 60 per ticket. There are 150 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 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 England 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 England Productionsâ€™ contribution margin income statement for 150 shows performed in 2014. Report only two categories of costs: variable and fixed.

Requirements

1. Compute revenue and variable costs for each show.

2. Use the equation approach to compute the number of shows England 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 England Productionsâ€™ contribution margin income statement for 150 shows performed in 2014. Report only two categories of costs: variable and fixed.

## Relevant Questions

Kincaid Company sells flags with team logos. Kincaid has fixed costs of $ 583,200 per year plus variable costs of $ 4.80 per flag. Each flag sells for $ 12.00.Requirements 1. Use the equation approach to compute the number ...Kincaid Company sells flags with team logos. Kincaid has fixed costs of $ 664,000 per year plus variable costs of $ 4.50 per flag. Each flag sells for $ 12.50. Requirements 1. Use the equation approach to compute the number ...You have just begun your summer internship at Omni Instruments. The company supplies sterilized surgical instruments for physicians. To expand sales, Omni is considering paying a commission to its sales force. The ...In the long run, all costs are controllable. Is this statement true? Why or why not? 11. Why is it appropriate to use variable costing when planning production in the short term? 12. What is a business segment? Give some ...Chang Company reports the following data:Finished Goods Inventory: Beginning balance, in units.......... 500 Units produced ............... 2,200 Units sold ................ 1,800 Ending balance, in units .......... 900 ...Post your question