9-4 the Alltel Pavilion Essays

ABSTRACT: The ALLTEL Pavilion case is intended for the undergraduate management accounting or cost accounting course and the M.B.A. management accounting course. It provides an excellent context in which to examine strategic issues in using cost volume profit (CVP) in a service business. Based on an actual entertainment pavilion, the case develops many factors unique to a service business and illustrates how pavilion management can use CVP analysis to determine which artists to attract and what kinds of contracts to have with these performers. The Pavilion has two types of

In order to calculate the breakeven point, we use the following equation and budget data:

The ALLTEL Pavilion in North Carolina is an outdoor amphitheater that provides about 40 concerts to the public per year. The past operating period shows negative results. The management’s aim is to forge a better strategy to realize their goals in terms of their budget and sign contracts with different artists.

2. Uncertainty/sensitivity analysis: The effects of uncertainty are considered in the profitability analyses. Examples include calculating or discussing the impact of various potential revenue levels on product line profit margins, and applying the probabilities of successfully negotiating postal outlet and lottery booth contracts.

Rishe is correct, pricing in this way will not maximize revenue from ticket sales because it’ll bring lower attendance, which bring negative change in revenue by decreasing in concessions, parking and merchandise.

In our second assumption, instead of using the cost of goods per cases in 1986, we try to use the percentage it counts in the total expenses which is 50.4% and to find the sales needed to break-even. The detail of the calculation is shown in the answer for questions d. The result is that 95,635, a little bit higher than the estimated sales of 90,000.

Cost of mailing/response rate = Cost to sign up one subscriber £0.50/2% = £25 per subscriber Another way to calculate cost per subscriber: Assume you mail offer to 100 people Costs = £50 (£0.50 x 100 people) Responders = 2 (2% of 100) Cost per responder = £50/2 or £25 How will this affect your breakeven calculation?

McDonald’s is not some ordinary fast food restaurant with its trademark logo advertised almost everywhere in the U.S., many people all over the world know about these famous golden arches. The McDonald’s franchising started in 1955 and in less than fifty years, McDonald’s was introduced all over the world in countries such as, China, Japan, Great Britain, Sweden, France etc. McDonald’s global expansion has intermingled with cultural traditions because these countries are becoming more westernized. Since East Asia is becoming more westernized it also means that there is a cultural difference because of the influences from outside the country. The cultures are being changed because of how ideas are expressed by people and not by their

Based on the Excel Problem of chapter one, if the total capacity for this business is 725 will you stay in it? If you want to stay in it what price you need to obtain a break even point of 725?

Break-even Dollar Volume = Total Fixed Costs / Contribution Margin = $525,000 / 0.7111 = $738,282.40

The third viable alternative for the festival is to use the market penetration strategy. It has been observed that a lot of people have been unable to attend the festival because of out-of-reach places and scarcity of tickets. Thus, if the

From a human resources standpoint, FNL currently has a great relationship with its clientele and is rich with performers and entertainers eager to take part in the events. This is demonstrated by the growth of visitors to 25,000 in the last season with additional growth expected. By last year’s numbers alone, 2,800 visitors can be expected, demonstrating the objective is not out of reach (see Exhibit 1). As the venue’s maximum operational capacity is limited 5,000 people, a sellout is plausible, creating a feel of exclusivity, encouraging people to buy their tickets in advance. A sold out event would be a huge success not only in achieving the desired attendance, but also for the future episodes in the

Durham Cathedral is one of the oldest examples of Romanesque architecture present in England today. Although the cathedral was completed in the early 12th century there are signs of Gothic architecture present due to the close relation of Romanesque and Gothic styles. In Robert Scott's book The Gothic Enterprise he discusses how the early Gothic style pulled heavily from the Romanesque style of architecture and built upon it's basic themes. Durham Cathedral's extensive history shows how the church's style of architecture remains mainly Romanesque, but has impressions of other styles due to renovations in different eras.

For most opera organizations, ticket sales contributed around 40% of the operating budget. “Over the past fifteen years, main season attendance at opera performances fluctuated between 3 and 4 million, compared to eight to eleven million for Broadway shows and 25 to 30 million for symphony orchestras. Some opera managers speculated that audience exhaustion with repetitive repertoire had contributed to a decline in attendance. Others attributed the lack of interest to poor awareness of individual opera singers.” (Gelb) The majority of fund operations came from government grant for many arts organizations, but at the same time a much greater percentage of non-ticket revenues, roughly 41%, came from private contributions. It is still important for the business to attract more individual customers. The whole industry needs innovation. Peter Gelb and his The Met Opera played a role as the leader of this innovation. The new way of increasing revenue that was introduced by Peter Gelb brings a new idea for this industry to keep alive in the 21st century with no doubt.

Strategies for success include gaining the support of social venue owners; however, this may prove