England Productions performs London shows. The average show sells 1,300 tickets at $60 per ticket. There arecan be held as the theater is also used by other production companies. The average show has a cast of 65, eshow. The cast is paid after each show. The other variable cost is a program-printing cost of $8 per guest.Requirements:1. Compute revenue and variable costs for each show.2. Use the income statement equation approach to compute the number of shows England Productions must p3. Use the contribution margin approach to compute the number of shows needed each year to earn a profit of4. Prepare England Productions' contribution margin income statement for 150 shows performed in 2012. Repo1$60 per ticketx1,300 tickets=$78,000 of the revenue per showVariable costs per show:ProgramsCastTotal variable costs per show:23728,00045,500Sales price per unit$78,0006,415,500$45,500=16-1,30065programs xactors xshowsVariable cost per unit$32,500===$141The profit goal of $5,687,500 is realistic if the number of shows that EnglandProductions is currently performing is greater than or close to the targetnumber of shows calculated in the previous step.4$8$340England ProductionsContribution Margin Income StatementYear Ended December 31, 2012Sales revenue$11,700,000Variable costs$4,875,000Contibution margin per unit$45,500Contribution marginFixed costsOperating income (loss)$6,825,000$728,000$6,097,0 ...
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