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  • 1.  NEED HELP IN CMA 2 QUESTION

    Posted 04-09-2013 02:35 PM
    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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  • 2.  RE:NEED HELP IN CMA 2 QUESTION

    Posted 04-10-2013 08:27 AM
    $ per show Price Avg Nos. Unallocated FC Diectly allocated FC Total fixed cost GM No of patrons required
    3500 18 194 184,528.62 165000 349,528.62 15 23,301.91
    3000 15 200 190235.7 249000 439,235.70 14 31,373.98
    4000 20 200 190235.7 316000 506,235.70 20 25,311.79
    594 565,000 79,988

    Is the calculation right?
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    Gopala Krishnan Sethuraman
    MIS Executive
    Al Futtaim Engineering
    DUBAI
    United Arab Emirates
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  • 3.  RE:NEED HELP IN CMA 2 QUESTION

    Posted 04-10-2013 09:47 AM
    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
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    [Waseem] [Ijha]
    [Accountant]
    [Bethlehem Municipality]
    [Bethlehem] [West bank]
    [ISRAEL]
    -------------------------------------------








  • 4.  RE: NEED HELP IN CMA 2 QUESTION

    Posted 04-27-2019 01:02 AM
    Total fixed

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    Vairavel Ramasamy
    Director/Manager
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