Calculating BEP in the given case
Not what you're looking for?
British Productions performs London shows. The average show sells 1,200 tickets at
$50 per ticket. There are 120 shows a year. The average show has a cast of 70, each
earning an average of $300 per show. The cast is paid after each show. The other variable
cost is a program-printing cost of $7 per guest. Annual fixed costs total $459,000.
Requirements
1. Compute revenue and variable costs for each show.
2. Use the income statement equation approach to compute the number of shows British Productions must perform each year to break even.
"3. Use the contribution margin approach to compute the number of shows
needed each year to earn a profit of $3,825,000. Is this profit goal realistic?
Give your reasoning."
"4. Prepare British Productions' contribution margin income statement for
120 shows for 2011. Report only two categories of costs: variable and fixed."
Purchase this Solution
Solution Summary
Solution depicts the steps to estimate the BEP in the given case.
Education
- BEng (Hons) , Birla Institute of Technology and Science, India
- MSc (Hons) , Birla Institute of Technology and Science, India
Recent Feedback
- "Thank you"
- "Really great step by step solution"
- "I had tried another service before Brain Mass and they pale in comparison. This was perfect."
- "Thanks Again! This is totally a great service!"
- "Thank you so much for your help!"
Purchase this Solution
Free BrainMass Quizzes
Income Streams
In our ever changing world, developing secondary income streams is becoming more important. This quiz provides a brief overview of income sources.
Transformational Leadership
This quiz covers the topic of transformational leadership. Specifically, this quiz covers the theories proposed by James MacGregor Burns and Bernard Bass. Students familiar with transformational leadership should easily be able to answer the questions detailed below.
Basic Social Media Concepts
The quiz will test your knowledge on basic social media concepts.
Accounting: Statement of Cash flows
This quiz tests your knowledge of the components of the statements of cash flows and the methods used to determine cash flows.
Team Development Strategies
This quiz will assess your knowledge of team-building processes, learning styles, and leadership methods. Team development is essential to creating and maintaining high performing teams.