Dear All,
First step, compute the total average attendance of performances for each producer:
Mr. Wonderful:
12*$3,500= $42,000
That's life:
20*$3,000= $60,000
All that Jazz: 12*$4,000= $48,000 Total
$150,000
Second step, compute he weighted average contribution margin:
CM= (42,000/150,000)*15 + (60,000/150,000)*14 + (48,000/150,000)*20 = $16.2
Final step, use the BEP in units formula:
BEP in units = Fixed costs/WACM = (165,000+249,000+316,000+565,000)/16.2 = 79,938.27 -------------------------------------------
[Waseem] [Ijha]
[Accountant]
[Bethlehem Municipality]
[Bethlehem] [West bank]
[ISRAEL]
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Original Message:
Sent: 04-09-2013 02:34 PM
From: Syed Kaleem Jilanee
Subject: NEED HELP IN CMA 2 QUESTION
This message has been cross posted to the following Discussions: Financial Management Forum and CMA Study Group .
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Hi All,
Can you please solve the below Question:
Question 72 of 100 (2C1-CQ18)
Starlight Theater stages a number of summer musicals at its theater in northern Ohio. Preliminary planning has just begun for the upcoming season, and Starlight has developed the following estimated data.
Starlight will also incur $565,000 of common fixed operating charges (administrative overhead, facility costs, and advertising) for the entire season, and is subject to a 30% income tax rate.
If Starlight's schedule of musicals is held, as planned, how many patrons would have to attend for Starlight to break even during the summer season?
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Syed Kaleem Jilanee EA
Accountant
Strata Mubadala
Al Ain
United Arab Emirates
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