Bellevue Amateur Dramatics club produces Shakespearian plays in a rural country setting. There are two productions every
Question:
Bellevue Amateur Dramatics club produces Shakespearian plays in a rural country setting. There are two productions every year and each production has five performances. The average performance sells 150 tickets. The cast are not paid; however, the director is paid $500 per year. Stage backdrops are made and painted locally by a TAFE art school which charges $400 for the two sets. Guests receive a programme and a ticket at a cost of $4 for printing per guest and also a complimentary drink at an average cost of $2 per guest. Members of the club act as staff for the performance and are paid $30 per show and each show needs three such students to help. The shows are popular and are always sold out in advance; tickets sell for $30 each.
Required:
a Calculate the annual fixed costs.
b Calculate the variable expenses per show.
c Calculate the contribution margin per ticket sold/patron.
d Calculate the break-even point in terms of number of ticket sales/patrons.
e Calculate the annual profit or loss of the business with the expected number of shows planned for the year.
Step by Step Answer:
Accounting Information For Business Decisions Accounting
ISBN: 9780170446242
4th Edition
Authors: Billie Cunningham, Loren A. Nikolai, John Bazley, Marie Kavanagh