Western North Carolina Playhouse" case, Managerial Accounting
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- Hi Please Need A Help To Answer For Following Questions From Western North Carolina Playhouse Case Managerial Accou 1 (417.66 KiB) Viewed 41 times
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THREE-YEAR PLANNING DATA, 2005-2007 Performance revenue: The WNCP auditorium has 1000 seats with four sections, AAA, AA, A, and B. The number of seats and the normal ticket price for each of the four sections is, as follows: AAA 100 seats $40 per ticket AA $30 per ticket 200 seats 400 seats $20 per ticket A B 300 seats $10 per ticket The auditorium is configured as shown below: STAGE AA Journal of the International Academy for Case Studies, Volume 12, Number 5, 2006
Each play that is considered for performance is given a category rating to indicate the level of attendance the play is expected to generate over a relevant range of performances. Because the WNCP wants to offer a wide variety of plays each season, the schedule will include plays from each category with a minimum number of offerings of 5 evening performances per play per year and a maximum of 20 evening performances per play per year. Each year WNCP will offer a total of ten plays: two plays from category 1, three from category 2, three from category 3, and two from category 4. The administrative staff of the WNCP has developed the following category chart for each evening performance of a play in that category: Section % of Capacity Category 1 AAA 95% AA 95% A 95% B 95% 2 AAA 90% AA 85% A 85% B 80% AAA 85% AA 80% A 75% B 75% AAA 80% AA 75% A 65% B 65% 3 4
WNCP has developed and used a plan for obtaining individual contributions that has proved effective. The plan involves providing tickets to the contributors that can be used for any performance and the contributors are recognized in the season's playbill. There are five different categories of contributors, which are, as follows: Stars $5,000+ Angels $3,000 Benefactors $2,000 Supporters $1,000 Sustainers $ 500 12 tickets in section AAA 8 tickets in section AAA 6 tickets in section AA 6 tickets in section A 6 tickets in section B As in prior years, it is expected that WNCP will have 20 Stars contributing an average of $6,000 each, 40 Angels contributing $3,000 each, 60 Benefactors contributing $2,000 each, 100 Supporters contributing $1,000 each, and 300 sustainers contributing $500 each. WNCP has a number of loyal corporate sponsors to underwrite a part of the cost for each of the ten plays offered each season. These sponsorships are $40,000 per play and provide WNCP with $400,000 per year. The corporate sponsor receives a block of 8 section AAA tickets to each performance of the play being sponsored and major recognition by WNCP. Table 1: Variable Cost per Performance Category Variable Costs per Performance 1 2 3 4 Salaries Top Actors: Maximum Number 3 2 1 1 Salary Per Performance $3,000 $3,000 $3,000 $1,500 Salaries Supporting Actors $ 100 $ 100 $ 100 $ 100 Obtain Rights $ 120 $80 $ 60 $ 40 Orchestra Fees $ 200 $ 200 $ 150 $ 100 Fixed Costs per Performance 3 4 1 $500,000 Fixed Production Costs Per Play: $200,000 $100,000 All Other Fixed Costs: $600,000 per year Category 2 $300,000
PLAYS UNDER CONSIDERATION The WNCP Board is considering thirty plays for the three year period, 2005-2007. Ten different plays will be scheduled each year. As mentioned before, each year's season runs for 150 days and evening performances will be scheduled for each of those days. Matinee performances can be scheduled preceding any evening performance if economically feasible. The plays are under consideration are displayed in Table 2. Table 2: Plays Under Consideration Play Genre # Actors Category Bay at the Moon Comedy 6 1 Beat Comedy 2 1 Beautiful Woman Comedy 5 1 Bill of Rights Drama 3 1 Admissions Comedy 8 1 The Bill Show Comedy 9 1 The Box Drama 7 2 The Brightest Light Comedy/Drama 20 2 Cairo Drama 11 2 Captain 11 Drama 12 2 Cat and Mouse Comedy 4 2 Chitterling Heights Drama/Comedy 8 2 Christmasless Comedy 6 Circumference Drama 2 2 Counsellor Adams Drama 9 2 Journal of the International Academy for Case Studies, Volume 12, Number 5, 2006
Hate Mail Hell to Pay The Hidden Place A Hole in the Dark A House of Cards Dreaming of Norton Eastwest Eighteen Evergreen Heights The Coyote Bleeds Cupid & Psyche Dangerous Debt The Desk Play Table 2: Plays Under Consideration Genre Comedy Farce Drama Drama Drama Comedy/Drama Drama Drama Comedy/Drama Comedy/Drama Comedy Drama/Comedy Fantasy/Drama Drama Drama # Actors 8 7 5 10 4 6 2 6 9 9 4 2 10 6 8 Category 3 3 3 3 3 3 3 3 3 4 4 4 4 4 4