Question #2 (from the previous post):

Using the budget prepared in Question 1: a. Identify each cost as variable, fixed, or step in relation to tickets sold. Hint: Determine the weighted average ticket price and contribution margin from the sales mix information (percentage of adult tickets vs. percentage of student and senior tickets). b. In the first case, assume that all funds are to come from ticket sales only and that there are four shows in total. Compute the breakeven point in number of tickets to be sold and in U.S. dollars.

***Need clarification on how to calculate the highlighted section***

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****PLEASE KINDLY SHOW ALL CALCULATIONS**** THANK YOU.

1 Budgeted Statement based on Four Shows 2 RECEIPTS 3 Black Box Theater, including adults, students and senior 4 TOTAL ESTIMATED TICKET RECEIPTS 3 5 6 Cash Donation 7 In-kind food donation 8 Cash and In-Kind Food Donation Total 9 9 TOTAL BUDGETED RECEIPTS 10 11 12 13 14 13 15 16 17 18 19 20 21 22 23 24 25 26 37 B BUDGET $4,338 $4,338 SO SO $0 $4,338 C ACTUAL D E EXPENDITURE Total Variable Costs Total Contribution Margin Step Costs: From Solution to Question 2b Technical Support & Lighting (4-hour minimum) Sound Technician (4 hour minimum) House Management Total Step Costs Fixed Costs: Hall rental per week, including practices and performance One time ticket set up fee Rental for rehearsal Stage Stage Decoration and Transportation of dcor Additional light and sound Brochures and printing Publicity for various ads, interviews, Facebook ads etc. Make up Food during performance and rehearsals Copyright Payment Other Total Step and Fixed Costs Operating Income before Donations NET OPERATING INCOME ESTIMATED F H BUDGET ACTUAL $900 $900 $3,438 $480 ($120 x 4 shows) $480 ($120 x 4 shows) $240 ($60 x 4 shows) $1,200 $2,000 $20 $0 $0 $0 $0 $0 $0 $0 $0 $0 $3,220 ($1200 + 2000+20) $218 (3438-3220) $218 (3438-3220) I J K Service Fixed Costs assumptions Hall rental per week, including practices and performance One-time ticket set-up fee Step costs assumptions Technical support and lighting (4-hour minimum) Sound techinician (4-hour minimum) House management Variable costs assumptions Facility fees Ticket convenience charges Ticket sales assumptions Estimated number of shows Price per ticket - adult Price per ticket - student and senior Estimated percentage of adult ticket Estimated percentage of student and senior ticket Maximum capacity seats Average occupancy per show Budget: Calculated based on information provided in Exhibits 1 and 3 Ticket sales - adult 0 Ticket sales - student and senior 0 Total number of tickets 0 4 per hour per hour per show per ticket per ticket hrs per show Receipts Ticket receipts - adult Ticket receipts - student and senior Total Receipts Expenditures Variable costs iFacility fees Ticket convenience charges Total Variable Costs Contribution margin Step costs Technical support and lighting (4-hour minimum) Sound technician (4-hour minimum) House management Fixed costs Hall rental per week, including practices and performance One-time ticket set-up fee Rental for rehearsal Stage decoration and transportation of dcor Additional light and sound Brochures and printing Publcity for various ads, interviews, Facebook ads, etc. Make-up Food during performances and rehearsals Copyright payment Other Total step and fixed costs Operating Income Before Donations Cash and in-kind donation iCash donation Food in-kind donation Total donations I Net operating income $0 Calculate breakeven Average price per ticket $0 Total Receipts - Total Variable Costs Average variable cost per ticket Average contribution margin Number of tickets needed to break even 0 From Case 1 ($30 per hour x 1.5 hours per show x 4 show Ticket receipts needed to break even 0 Average number of tickets needed to break even per show 0 Break-even occupancy T From Case Descriptions $0 $0 0 T T 0 $O $0 $0 Contribution Margin- Total Step and Fixed Costs $0 $0 Operating income before donations + Total donations T 1 Budgeted Statement based on Four Shows 2 RECEIPTS 3 Black Box Theater, including adults, students and senior 4 TOTAL ESTIMATED TICKET RECEIPTS 3 5 6 Cash Donation 7 In-kind food donation 8 Cash and In-Kind Food Donation Total 9 9 TOTAL BUDGETED RECEIPTS 10 11 12 13 14 13 15 16 17 18 19 20 21 22 23 24 25 26 37 B BUDGET $4,338 $4,338 SO SO $0 $4,338 C ACTUAL D E EXPENDITURE Total Variable Costs Total Contribution Margin Step Costs: From Solution to Question 2b Technical Support & Lighting (4-hour minimum) Sound Technician (4 hour minimum) House Management Total Step Costs Fixed Costs: Hall rental per week, including practices and performance One time ticket set up fee Rental for rehearsal Stage Stage Decoration and Transportation of dcor Additional light and sound Brochures and printing Publicity for various ads, interviews, Facebook ads etc. Make up Food during performance and rehearsals Copyright Payment Other Total Step and Fixed Costs Operating Income before Donations NET OPERATING INCOME ESTIMATED F H BUDGET ACTUAL $900 $900 $3,438 $480 ($120 x 4 shows) $480 ($120 x 4 shows) $240 ($60 x 4 shows) $1,200 $2,000 $20 $0 $0 $0 $0 $0 $0 $0 $0 $0 $3,220 ($1200 + 2000+20) $218 (3438-3220) $218 (3438-3220) I J K Service Fixed Costs assumptions Hall rental per week, including practices and performance One-time ticket set-up fee Step costs assumptions Technical support and lighting (4-hour minimum) Sound techinician (4-hour minimum) House management Variable costs assumptions Facility fees Ticket convenience charges Ticket sales assumptions Estimated number of shows Price per ticket - adult Price per ticket - student and senior Estimated percentage of adult ticket Estimated percentage of student and senior ticket Maximum capacity seats Average occupancy per show Budget: Calculated based on information provided in Exhibits 1 and 3 Ticket sales - adult 0 Ticket sales - student and senior 0 Total number of tickets 0 4 per hour per hour per show per ticket per ticket hrs per show Receipts Ticket receipts - adult Ticket receipts - student and senior Total Receipts Expenditures Variable costs iFacility fees Ticket convenience charges Total Variable Costs Contribution margin Step costs Technical support and lighting (4-hour minimum) Sound technician (4-hour minimum) House management Fixed costs Hall rental per week, including practices and performance One-time ticket set-up fee Rental for rehearsal Stage decoration and transportation of dcor Additional light and sound Brochures and printing Publcity for various ads, interviews, Facebook ads, etc. Make-up Food during performances and rehearsals Copyright payment Other Total step and fixed costs Operating Income Before Donations Cash and in-kind donation iCash donation Food in-kind donation Total donations I Net operating income $0 Calculate breakeven Average price per ticket $0 Total Receipts - Total Variable Costs Average variable cost per ticket Average contribution margin Number of tickets needed to break even 0 From Case 1 ($30 per hour x 1.5 hours per show x 4 show Ticket receipts needed to break even 0 Average number of tickets needed to break even per show 0 Break-even occupancy T From Case Descriptions $0 $0 0 T T 0 $O $0 $0 Contribution Margin- Total Step and Fixed Costs $0 $0 Operating income before donations + Total donations T