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traveling circus_CVP Analysis




Question;A traveling;circus puts on 120 performances per year. Each performance sells 1,000 tickets;at $45 per ticket. The circus has a cast of 45 performers. Each performer earns;$300 per circus performance. The performers are paid after each performance.;Other variable expenses include a program printing expense of $9 per customer.;Annual fixed expenses for the circus total $787,500.;Requirements;1. Compute;revenue and variable expenses for each show.;2. Compute;the number of shows needed each year to break even.;3. Compute;the number of performances needed each year to earn a profit of $3,262,500.;4. Is the;goal of earning profit of $3,262,500 realistic? Explain why or why not. Provide;a rationale to support your response.;5. Prepare;the circus' contribution margin income statement for 120 shows each year.;Report only fixed and variable expenses.


Paper#37499 | Written in 18-Jul-2015

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