70.2K

Verified Solution

Link Copied!

son A traveling production of Ridder on the Roof performs wach year. The average shows 800 ks at $45 at There are 120 shows each year. The show has a cast of 50, each eaming an average of $250 per show. The cast is paid only for each show. The other variable expense is program printing of per quest need expenses total $566,800 Read the regirements 0 Requirement 1. Compute revenue and variable expenses for each show The revenue for each shows $36.000 LOEB The variable expenses for each show are $ 18.000 Requirement 2. Use the income statement equation approach to compute the number of shows needed to break even Begin by determining the basic income statement equation Sales revenue Fred expenses Variable expenses Operating income Using the basic income statement equation you determined above, solve for the number of shows to breakeven The number of shows needed annually to break even is 11 Requirements 1. Compute revenue and variable expenses for each show 2. Use the income statement equation approach to compute the number of shows needed annually to break even 3. Use the shortcut unit contribution margin approach to compute the number of shows needed annually to earn a profit of $1,113,600 Is this goal realisti? Give your reason 4. Prepare Fiddler on the Roof's contribution margin income statement for 120 shows each year. Report only two categories of expenses variable and fed Print Done Enter any number in the OCCAS 4 pernaining Clear All Check MacBook Pro 000 * 000 A & * ) ( 9 . + 11 delete 6 5 7 0 8 { } c

Answer & Explanation Solved by verified expert

See Answer