MANAGEMENT AND COST ACCOUNTING
Group Assignment – Case 5
AUBURN CIRCULAR CLUB PRO RODEO ROUNDUP
AUBURN CIRCULAR CLUB PRO RODEO ROUNDUP 1. Yes, it was necessary for Shelley Jones to stipulate that she wanted a fund-raiser. Reasons:
1. Become the target / KPI for the fund raised. 2. Auburn Circular Club will be recognised by the community. 3. Contribution for the community. 4. Sense of responsibility for fund-raiser. 5. Ensure continuity of the rodeo event for future year with sufficient fund.
2. What Jonathan Edmunds meant was lost in the year event of $8,326 would contribute as amount invested to build the image of Auburn Circular Club.
3. Yes, Jonathan’s comment is consistent…show more content…
By assuming the average price of the ticket $8 ($8+$10+$6+$8 / 4)
Attendance = $33,773 / $8 = 4,222 patrons
The event was held for 3 days, attendance for one day = 4,222 / 3 = 1,407 patrons
Since the arena could hold 2,500 patrons, the facilities at the fairgrounds are adequate to handle crowds.
10. Auburn Circular Club Budgeted Income Statements for year 2 Receipt
Contribution from sponsor $25,600
Receipt from ticket sales $65,625
Total receipt $91,225
Livestock contractor $26,000
Prize money $21,000
Sponsor signs for arena $ 2,211 ($1,900 x 116.364%)
Insurance $ 600
Ticket printing $ 525 ($1,050 x 50%)
Sanctioning fees $ 925
Entertainment $ 859
Judging fees $ 750
Rent $ 600
Utilities $ 300
Interest expense $ 300
Miscellaneous Fixed cost $ 100
Total expenses $53,870 11. The expenses are not related to Shelley purchases of rodeo clothing relevant cost. Why?
This is because the expenses by Shelley’s are personal expenses and not related to the club