A Traveling Production Of Grease Performs Each Year The Average

A traveling production of Grease performs each year. The average show sells 1,400 tickets at $50 per ticket. There are 100 shows a year. The show has a cast of 40, each earning an average of $340 per show. The cast is paid only after each show. The other variable expense is program printing expenses of $8 per guest. Annual fixed expenses total $1,582,000.
1. Compute revenue and variable expenses for each show.
2. Compute the number of shows needed annually to break even.
3. Compute the number of shows needed annually to earn a profit of $4,836,400. Is this goal realistic? Give your reason.
4. Prepare Grease’s contribution margin income statement for 100 shows each year. Report only two categories of expenses: variable and fixed.

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