A traveling production of Grease performs each year. The average show sells 1,000 tickets at $80 per ticket. There are 150 shows a year. The show has a cast of 50, each earning an average of $400 per show. The cast is paid only after each show. The other variable expense is program-printing expenses of $7 per guest. Annual fixed expenses total $950,000. The tax rate for the company is 40 percent.
a) Compute the earnings after tax for 150 shows.
b) Compute the number of shows needed annually to break even.
c) Compute the number of shows needed annually to earn a net income of $6,000,000.