Boston Ballet is located in Boston. The company is housed in the Opera. House in Boston downtown.
Question:
Boston Ballet is located in Boston. The company is housed in the Opera. House in Boston downtown. The company features five different ballets per year: The Dream, Peter Pan, The Nutcracker, Sleeping Beauty, and Swan Lake.
The tentative scheduled for each ballet is as following:
Dream . . . . . . . . . . . . . 5
Peter Pan . . . . . . . . .. 5
Nutcracker . . . . . . . . 20
Sleeping Beauty . . . . 10
Swan Lake . . . . . . . . 5
To produce each ballet, there are costs for costumes, props rehearsals, royalities, guest artist fees, choreography, salary of production staff, music, and wardrobe, These costs are fixed for particular ballet regardless of the number of performances. These direct fixed costs are given below for each ballet.
Dream . . . . . . . . . . . . . 275,500
Peter Pan . . . . . . . . .. 145,500
Nutcracker . . . . . . . . 70,500
Sleeping Beauty . . . . 345,000
Swan Lake . . . . . . . . 155,500
Other fixed costs for the whole company are as follows:
Advertising . . . . . . . . . . . . . . . . . 80,000
Insurance . . . . . . . . . . . . . . . . . 15,000
Administrative Salaries . . . . . . 222,000
Office rental, phone, etc . . . . . 84,000
Total . . . . . . . . . . . . . . . . . . . . . 401,000
For each performance of each ballet, the following costs are incurred.
Symphony . . . . . . . . . . . 3,800
Opera House rental . . . 700
Dancers' payroll .. . . . . . 4,000
Total . . . . . . . . . . . . . . . . . 8,500
The Opera Hose in which the ballet is presented has 1,854 seats, which are classified as A, B, and C. The best viewing ranges from A seats to C seats. Information concerning the different types of seats is given below.
1. Prepare a variable costing income statement for each ballet.
2. Calculate the number of performances to reach the break-even !Or each ballet.