Prepare jersey boy contribution margin income statement
Course:- Managerial Accounting
Reference No.:- EM13972847

Assignment Help
Expertsmind Rated 4.9 / 5 based on 47215 reviews.
Review Site
Assignment Help >> Managerial Accounting

A traveling production of Jersey Boys performs each year. The average show sells 1,000 tickets at $60 a ticket. There are 120 shows each year.

The show has a cast of 75, each earning an average of $300 per show. The cast is paid only after each show. The other variable expense is program printing costs of $9 per guest. Annual fixed expenses total $969,000


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 $3,078,000. Is this goal realistic? Give your reason.

4. Prepare Jersey Boy's contribution margin income statement for 100 shows each year. Report only two categories of expenses: variable and fixed.

Put your comment

Ask Question & Get Answers from Experts
Browse some more (Managerial Accounting) Materials
Curtis Corporation is beginning to manufacture Mighty Mint, a new mouthwash in a small spray container. The product will be sold to wholesalers and large drugstore chains in
Vernazza Pizza's owner bought his current pizza oven four years ago for $10,000 and it has one more year of life remaining. He is using straight-line depreciation for the ov
Grade A wire requires $450,000 of monthly variable costs to process into staples, which can be sold in the market on 5/1/XX for $7.00 per pound. Grade B wire requires $600,000
Klumper Corporation is a diversified manufacturer of industrial goods. The company's activity- based costing system contains the following six activity cost pools and activi
In summary, research is the process of systematically obtaining accurate answers to significant and persistent problems by use of scientific methods for gathering and interp
The note is at 10 percent per annum and requires monthly interest payments of 500. The payments are made on the 20th of each month. The principal must be paid in February of 2
What kind of system makes sense for your company, given that you plan to start with only one version of your product but at some point in the future may offer a va
$84,000 in raw materials were requisitioned for use in production. Of this amount, $72,000 was for direct materials and the remainder was for indirect materials. Total labor w