Green Productions performs London shows. The average show sells 1,200 tickets at $75 per ticket. There...

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Green Productions performs London shows. The average show sells 1,200 tickets at $75 per ticket. There are 140 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 70, 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 $15 per guest. Annual fixed costs total $626,600. Read the requirements. Requirement 1. Compute revenue and variable costs for each show. Select the formula and enter the amounts to compute sales revenue for each show Sales revenue per show 90,000 Net sales revenue per unit Number of units sold 75 1.200 Select the formula and enter the amounts to compute variable costs for each show. Compute the variable costs per show for each cost separately, and then compute the total variable costs per show. Variable costs per unit Number of units 15 1,200 340 70 Cost of programs Cost of performers Total variable costs Fixed costs = Variable costs per show 18,000 23,800 41,800 Requirement 2. Use the equation approach to compute the number of shows Green Productions must perform each year to break even. First, select the formula to compute the required sales in units to break even Net sales revenue Variable costs $ $ $ Target profit Rearrange the formula you determined above and compute the required number of shows to break even. The number of shows needed annually to break even is Requirement 3. Use the contribution margin ratio approach to compute the number of shows needed each year to earn a profit of $5,000,000. (Round contribution ratio to two decimal places.) Is this profit goal realistic? Give your reasoning. Begin by showing the formula and then entering the amounts to calculate the required sales dollars to earn a profit of $5,000,000. (Round the required sales in dollars to the nearest whole dollar. Round amounts in the formula to two decimal places, XXXX Abbreviation used: CM contribution margin) Fixed costs Target profit) CM ratio 53.56 $ 626,600 $ 5,000,000 = Required sales in dollars 10,505,228 117 Now use the information given and the required sales in dollars computed in the previous step to determine the required number of shows needed each year to earn a profit of $5,000,000. (Round your answer up to the nearest whole number.) The number of shows needed annually to earn a profit of $5,000,000 is Is this profit goal realistic? Give your reasoning. The profit goal of $5,000,000 is realistic since Green Productions currently performs 140 shows a year. Requirement 2. Use the equation approach to compute the number of shows Green Productions must perform each year to break even. First, select the formula to compute the required sales in units to break even. Net sales revenue Variable costs Fixed costs Target profit Rearrange the formula you determined above and compute the required number of shows to break even. The number of shows needed annually to break even is 13 Requirement 3. Use the contribution margin ratio approach to compute the number of shows needed each year to earn a profit of $5,000,000. (Round contribution ratio to two decimal places.) Is this profit goal realistic? Give your reasoning. Begin by showing the formula and then entering the amounts to calculate the required sales dollars to earn a profit of $5,000,000. (Round the required sales in dollars to the nearest whole dollar. Round amounts in the formula to decimal places, XX.XX. Abbreviation used: CM = contribution margin.) Fixed costs + Target profit )+ CM ratio = Required sales in dollars $ 626,600 + $5,000,000) + 53.56 % = $ 10,505,228 Now use the information given and the required sales in dollars computed in the previous step to determine the required number of shows needed each year to earn a profit of $5,000,000. (Round your answer up to the nearest whole number.) The number of shows needed annually to earn a profit of $5,000,000 is Is this profit goal realistic? Give your reasoning. The profit goal of $5,000,000 is realistic since Green Productions currently performs 140 shows a year. Requirement 4. Prepare Green Productions' contribution margin income statement for 140 shows performed in the year. Report only two categories of costs: variable and fixed. Green Productions Contribution Margin Income Statement Year Ended December 31, 20XX Sales Revenue Variable Costs Contribution Margin Fixed Costs Operating Income (Loss) $ 12,600,000 5,852,000 6,748,000 117 Green Productions performs London shows. The average show sells 1,200 tickets at $75 per ticket. There are 140 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 70, 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 $15 per guest. Annual fixed costs total $626,600. Read the requirements. Requirement 1. Compute revenue and variable costs for each show. Select the formula and enter the amounts to compute sales revenue for each show Sales revenue per show 90,000 Net sales revenue per unit Number of units sold 75 1.200 Select the formula and enter the amounts to compute variable costs for each show. Compute the variable costs per show for each cost separately, and then compute the total variable costs per show. Variable costs per unit Number of units 15 1,200 340 70 Cost of programs Cost of performers Total variable costs Fixed costs = Variable costs per show 18,000 23,800 41,800 Requirement 2. Use the equation approach to compute the number of shows Green Productions must perform each year to break even. First, select the formula to compute the required sales in units to break even Net sales revenue Variable costs $ $ $ Target profit Rearrange the formula you determined above and compute the required number of shows to break even. The number of shows needed annually to break even is Requirement 3. Use the contribution margin ratio approach to compute the number of shows needed each year to earn a profit of $5,000,000. (Round contribution ratio to two decimal places.) Is this profit goal realistic? Give your reasoning. Begin by showing the formula and then entering the amounts to calculate the required sales dollars to earn a profit of $5,000,000. (Round the required sales in dollars to the nearest whole dollar. Round amounts in the formula to two decimal places, XXXX Abbreviation used: CM contribution margin) Fixed costs Target profit) CM ratio 53.56 $ 626,600 $ 5,000,000 = Required sales in dollars 10,505,228 117 Now use the information given and the required sales in dollars computed in the previous step to determine the required number of shows needed each year to earn a profit of $5,000,000. (Round your answer up to the nearest whole number.) The number of shows needed annually to earn a profit of $5,000,000 is Is this profit goal realistic? Give your reasoning. The profit goal of $5,000,000 is realistic since Green Productions currently performs 140 shows a year. Requirement 2. Use the equation approach to compute the number of shows Green Productions must perform each year to break even. First, select the formula to compute the required sales in units to break even. Net sales revenue Variable costs Fixed costs Target profit Rearrange the formula you determined above and compute the required number of shows to break even. The number of shows needed annually to break even is 13 Requirement 3. Use the contribution margin ratio approach to compute the number of shows needed each year to earn a profit of $5,000,000. (Round contribution ratio to two decimal places.) Is this profit goal realistic? Give your reasoning. Begin by showing the formula and then entering the amounts to calculate the required sales dollars to earn a profit of $5,000,000. (Round the required sales in dollars to the nearest whole dollar. Round amounts in the formula to decimal places, XX.XX. Abbreviation used: CM = contribution margin.) Fixed costs + Target profit )+ CM ratio = Required sales in dollars $ 626,600 + $5,000,000) + 53.56 % = $ 10,505,228 Now use the information given and the required sales in dollars computed in the previous step to determine the required number of shows needed each year to earn a profit of $5,000,000. (Round your answer up to the nearest whole number.) The number of shows needed annually to earn a profit of $5,000,000 is Is this profit goal realistic? Give your reasoning. The profit goal of $5,000,000 is realistic since Green Productions currently performs 140 shows a year. Requirement 4. Prepare Green Productions' contribution margin income statement for 140 shows performed in the year. Report only two categories of costs: variable and fixed. Green Productions Contribution Margin Income Statement Year Ended December 31, 20XX Sales Revenue Variable Costs Contribution Margin Fixed Costs Operating Income (Loss) $ 12,600,000 5,852,000 6,748,000 117

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