Assessment Page 1 of 1 AC203: Managerial Accounting > Week 4 > Assignment > Writing Assignment 2 Question 1 of 1: Calculation of Contribution Margin Income Statement Elapsed Time: Time Remaining: Introduction: This assignment will help you learn to determine the contribution margin ratio, use a cost volume profit analysis to find the breakeven points, and target profit volumes for a company. Tasks: Read the scenario below and answer the questions that follow. 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. Deliverables and Format: • Submit answers for all requirements as an Excel document to show your calculations. • Create a new tab for this requirement and specify the respective requirement number. References: null Answer /response: Attachments: Attach/Remove Fde I << Previous Question I Skip Question >> ….. SHe a. Eait J http://online.dwc.edu/online/valdoc/clikslndep _ startTest?_i= 1404950406235 2699301007 … 0 min Unl’lmited Bookmark ,.Review 7/9/2014
Assessment Page 1 of 1 Elapsed Time: 0 min AC203: Managerial Accounting > Week 4 > Assignment > Writing Assignment 2 Time Unl’lmited Remaining: Bookmark Question 1 of 1: Calculation of Contribution Margin Income Statement Introduction: This assignment will help you learn to determine the contribution margin ratio, use a cost volume profit analysis to find the breakeven points, and target profit volumes for a company. Tasks: Read the scenario below and answer the questions that follow. 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. Deliverables and Format: • Submit answers for all requirements as an Excel document to show your calculations. • Create a new tab for this requirement and specify the respective requirement number. References: null Answer /response: Attach/Remove Fde I Attachments: ,.Review << Previous Question I Skip Question >> ….. SHe a. Eait J http://online.dwc.edu/online/valdoc/clikslndep _ startTest?_i= 1404950406235 2699301007 … 7/9/2014
Attachments:
margin income….pdf