A traveling production of
Fiddler on the RoofFiddler on the Roof
performs each year. The average show sells
1 comma 6001,600
tickets at
$ 50$50
per ticket. There are
125125
shows each year. The show has a cast of
6060 ,
each earning an average of
$ 320$320
per show. The cast is paid only after each show. The other variable expense is program printing costs of
$ 9$9
per guest. Annual fixed expenses total
$ 1 comma 763 comma 200$1,763,200.
Read the requirements
LOADING…
.
Requirement 1. Compute revenue and variable expenses for each show.
| The revenue for each show is $ | . |
| The variable expenses for each show are $ | . |
Requirement 2. Use the income statement equation approach to compute the number of shows needed annually to breakeven.
Begin by determining the basic income statement equation.
| – | – | = | 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 | . |
Requirement 3. Use the shortcut unit contribution margin approach to compute the number of shows needed annually to earn a profit of
$ 2 comma 644 comma 800$2,644,800
Is this goal realistic? Give your reason.
Begin by selecting the formula.
| ( | + | ) / | = | Target # of shows |
Using the equation you determined above, solve for the target number of shows.
| The number of shows needed annually to earn a profit of $2,644,800 is | . |
The profit goal of
$ 2 comma 644 comma 800$2,644,800
is
▼
realistic
unrealistic
since
Fiddler on the RoofFiddler on the Roof
currently performs
125125
shows a year.Requirement 4. Prepare
Fiddler on the RoofFiddler on the Roof ‘s
contribution margin income statement for
125125
shows each year. Report only two categories of expenses: variable and fixed.
| Fiddler on the Roof | ||||
| Contribution Margin Income Statement | ||||
| Year Ended December 31 |
