Question

Famous Productions performs London shows. The average show sells 900 tickets at $ 65 per ticket. There are 115 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 55​, each earning a net average of $ 330 per show. The cast is paid after each show. The other variable cost is a​ program-printing cost of $ 9 per guest. Annual fixed costs total $ 580 comma 500.

Compute revenue and variable costs for each show.

Answer 1

Answer:

Instructions are listed below.

Explanation:

Giving the following information:

The average show sells 900 tickets at $ 65 per ticket. The average show has a cast of 55​, each earning a net average of $ 330 per show. The cast is paid after each show. The other variable cost is a​ program-printing cost of $ 9 per guest. Annual fixed costs total $580,500.

Unitary variable cost= 55*$330 + $9*900= $26,250

Unitary fixed costs= 580,550/115 shows= $5,048

Income statement:

Sales= 900*65= $58,500

Unitary variable cost= (26,250)

Contribution margin= $32,250

Unitary Fixed costs= 5,048

Operating income= $27,202