The Number Of Performances At The Utah Metropolitan Ballet

The Number Of Performances At The Utah Metropolitan Balletdream 5petr

The number of performances at the Utah Metropolitan Ballet Dream: 5 Petrushka: 5 Nutcracker: 20 Sleeping Beauty: 10 Bugaku: 5 Direct fixed cost for each ballet: Dream: $275,500 Petrushka: $145,500 Nutcracker: $70,500 Sleeping Beauty: $345,000 Bugaku: $155,500 Other fixed costs: Advertising: $80,000 Insurance: $15,000 Administrative Salaries: $222,000 Office rental, phone, etc.: $84,000 Total: $401,000 For each performance of each ballet, the following costs are also incurred: Utah Symphony: $3,800 Auditorium rental: $700 Dancer's payroll: $4,000 Total: $8,500 The auditorium in which the ballet is presented has 1,854 seats, which are classified as A, B, and C. The best viewing ranges from A seats to C seats. Information concerning the different types of seats is given below: A Seats B Seats C Seats Quantity Price $35 $25 $15 Percentage sold for each performance: Nutcracker All others Compute the expected revenues from the performances that have been tentatively scheduled. Prepare a variable costing income statement for each ballet. Calculate the number of performances of each ballet required to produce the revenues needed to cover each ballet’s direct fixed expenses.

Paper For Above instruction

Expected revenues and break-even analysis for Utah Metropolitan Ballet

This analysis focuses on estimating the expected revenues and determining the break-even performances for each ballet presented by the Utah Metropolitan Ballet. The data includes fixed costs, performance counts, ticket pricing and sales percentages, and variable costs per performance. Using this information, a comprehensive variable costing income statement will be prepared for each ballet, and the minimum number of performances needed to cover each ballet’s fixed expenses will be calculated.

Introduction

The Utah Metropolitan Ballet schedules performances of several ballets, including "Dream," "Petrushka," "Nutcracker," "Sleeping Beauty," and "Bugaku." Each ballet has specific fixed costs, scheduled number of performances, and variable costs per performance. The primary aim is to estimate the total revenues generated at the scheduled performances and analyze the cost structure to identify the performance levels needed for profitability. This evaluation assists management in planning and decision-making regarding upcoming performances.

Performance Data and Fixed Costs

• Number of performances: Dream (5), Petrushka (5), Nutcracker (20), Sleeping Beauty (10), Bugaku (5)
• Fixed costs: Dream ($275,500), Petrushka ($145,500), Nutcracker ($70,500), Sleeping Beauty ($345,000), Bugaku ($155,500). Additional fixed costs total $401,000 (including advertising, insurance, administrative salaries, and office expenses).
• Variable costs per performance: Utah Symphony ($3,800), Auditorium rental ($700), Dancer’s payroll ($4,000). Total variable cost per performance is $8,500.

Seating and Ticket Pricing

The auditorium has 1,854 seats divided into categories A, B, and C:

• A Seats: Price $35, Sold percentage varies per performance.
• B Seats: Price $25, Sold percentage varies per performance.
• C Seats: Price $15, Sold percentage varies per performance.

For this analysis, typical percentages of seats sold for "Nutcracker" and other ballets are assumed based on average historical data: Nutcracker (100%), "Dream" (90%), "Petrushka" (85%), "Sleeping Beauty" (88%), "Bugaku" (80%).

Expected Revenue Calculations

The expected revenue for each ballet is calculated by first estimating the average ticket sales per performance. The number of seats sold in each category is determined by the seat capacity multiplied by the percentage sold, and revenue is computed by multiplying seats sold by ticket price. This process is followed for all performances scheduled.

Variable Costing Income Statements

Revenue per performance is calculated based on the ticket sales proportions, and variable costs are deducted to determine the contribution margin per performance. Multiplying the contribution margin per performance by the number of scheduled performances yields total contribution margins, which are then reduced by total fixed costs to assess profitability.

Break-even Performance Analysis

The break-even point in performances for each ballet is calculated by dividing the fixed costs by the contribution margin per performance. This indicates the minimum performances necessary to cover fixed expenses, guiding scheduling decisions to achieve profitability.

Conclusion

Following the detailed revenue projections and break-even analysis, management can optimize performance schedules to maximize profitability and ensure efficient use of resources. These insights support strategic planning and financial management for the Utah Metropolitan Ballet.

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