The Annie Smith Sport Center

The Director of Annie Smith Sport Disposition is search for countenance after a while the financial aspects of running a negotiative collocation of performers. She nonproductions financial notice presented in an unconcerned to discover format and a meliorate knowledge of the advantageability of the concords and the construction as a entire.

The Annie Smith negotiative collocation features three styles of sport concords each year. Two of the sport concords showcase a unanalogous genre. The third act is a Christmas Spectacular, which is the most prevailing and is for-this-reason listd unimpaired year. The consideration under provides notice environing expected ticket sales for the acts.

Lower Orchestra Section (A)Upper Orchestra Section (B)DescriptionsNo. of Seats.Ticket PriceTickets sold per actNo. of seatsTicket PriceTickets sold per actHip-Hop Performance150$85100%450$5090%Jazz and Tap Dance150$85100%450$5060%Christmas Spectacular150$125100%450$50100%

Ms. Smith has expeditions a empirical list for the future suitableness. The consideration under besides shows the pattern and sum of acts and plain consume per pattern of concord.

DescriptionsNumber of PerformancesCost per Sport Concert
(plain agricultural consumes)*Hip-Hop Concert10$48,000Jazz and Tap Dance586,000Christmas Spectacular2022,000Total Plain Agricultural Costs$156,000

*Examples of plain agricultural consumes are consumeumes, rehearsals, royalties, visitor artist fees, choreography, and salaries of formation staff, voice, and wardrobe for each of the concords. This aggregate does not exexchange after a while the sum of acts.

Additional consumes:

Variable consumes associated after a while each act are shown under.

Musicians$6,100Rental of auditorium2,500Dancers' compensation6,700

Annual open negotiative and uncounted consumes for the sport disposition are:

Administrative staff$185,000Insurance25,000Marketing115,000General employment-post expenses90,000

Case Assignment


Computations (use Excel)

  • Summarize key financial notice in a consideration as shown under.

TitleName of Sport ConcertRevenues/
PerformanceVariable Costs/
PerformanceContribution Margin/
PerformanceNumber of PerformancesTotal Contribution/
Type of Sport ConcertDirect Agricultural CostsSegment Margin/
Type of Concert1.2.3.Total

  • Use the notice in the consideration you completed to estimate the sum of acts required to tear-asunder smooth for each concord. Do not conceive open and negotiative expenses. These are detached computations for each sport concord.
  • Compute tear-asunder smooth for the construction as a entire (conceive all agricultural expenses) and direct the termination in revenues instead of the sum of acts.
  • Ms. Smith nonproductions the Sport Disposition to beget at smallest $200,000 in uncounted advantage. What smooth of revenues does the act collocation scarcity to close to coalesce this aim? Prepare an allowance declaration in good-tempered-tempered format to patronage the computations.
  • Give a advice environing exchanges Ms. Smith can utensil to close the target advantage. Patronage your effect after a while computations.

Memo (use Word)

Write a 4- or 5-paragraph memo to the proprietor of the sport disposition to further her in interpreting the financial partition. Start after a while an preliminary and end after a while a advice. Each of the foul-mouthed or five paragraphs should own a heading.

Short Dissertation (use Word)

Start after a while an preliminary and end after a while a abstract or disposal. Use headings.

  • What are some incomprehensivecomings of multi-product smooth partition?
  • How does call-for and contrivance constraints favor this pattern of partition.

Assignment Expectations

Each meekness should conceive two refines: (1) An Excel refine and (2) a Word muniment. The Word muniment shows the memo primeval and incomprehensive dissertation latest. Assume a knowledgeable employment interview and use required format and tediousness. Individuals in employment are assiduous and nonproduction notice presented in an systematic and neat sort. 

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