TO: Pam Berg, Manager of the ALLTEL Pavilion
FROM: Valentina Golman, Cost Accountant
DATE: October 29, 2011
SUBJECT: ALLTEL’s Strategy and CVP Analysis
As requested, CVP analysis of the ALLTEL Pavilion has been investigated. The focus of the investigation was on firm’s competitive strategy, operating results, negotiating contract fees with artists, earning budgeted profit goals.
Findings:
1. In response to the competitive strategy of the ALLTEL Pavilion * it is noted to be differentiation. The firm positions and distinguishes itself from its competitors by providing high end experience to its customers. The unique value of the product would be: advanced technology, no bad seat in the house, beautiful settings, wonderful
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The Pavilion is expected to make this profit. Refer to exhibit3 (2B)
3. If number of projected tickets sold is changing from 8,251 to 7,000, fee paid to the KFBS concert is also changing to $200,000 and the Pavilion wants to earn $30,000 after 40% taxes then as follows average ticket price should change from $22.12 to $32.95. Refer to calculations in exhibit 3 (3)
4. Negotiating the fee for the KFBS Allstars: fixed-pay or per capita contracts with average ticket price of $22.12
* The maximum fixed fee the Pavilion can pay to the KFBS Allstars is $59,630, in order to earn $45,000 after 40% tax and projected 6,000 tickets sold. Refer to exhibit 3 (4A).
* The maximum fixed fee The ALLTEL can pay to the KFBS Allstars is $455,030 if the show is expected to be sellout and the Pavilion wants to earn $45,000 after 40% tax. Refer to exhibit 3 (4B).
* The maximum per capita fee that the Pavilion can pay to the KFBS Allstars is $16.65 or $324,819, assuming the show is sellout and the Pavilion wants to earn $180,000 after 40% tax. Refer to exhibit 3 (4C).
5. CVP analyses helps to understand how profit is affected by the relations among revenue, cost and volume. The decisions on ticket pricing, volume being sold, incurring a cost impact on desired profit. So, CVP analyses helps to determine how many tickets and at what average price the
2.Now a days, concerts of famous artists are usually held in big stadiums and theaters, which brings a huge crowd of fans for affordable ticket prices and the same time, satisfies the high demanded payment for the top artists and earns a profit for the organizers of the shows. However, there are concert management companies, like Nederlander, that manages to charge higher ticket prices for small theater performances and to deliver a “sellout crowd night after night”(Video Case: Nederlander, p.1). Why is Nederlander able to do that when audiences could pay less at stadium concerts?
Additionally, the Chapter may access a fee for fundraising or other activity based on a 2/3 vote of the quorum of the members. The Chapter has assessed a ten (10) tickets sales fee, the equivalent of $1000 for the past two (2) years for the fundraiser which is typically offset by member ticket sales. In the first year of membership, this assessment is reduced to the minimum purchase of two (2) tickets for the current year’s fundraiser.
A $2 increase on admission prices has the potential to increase revenues with a low risk of profit loss. A loss would only occur if the price change were to lose more than 572 visitors. An increase to $14 a ticket will bring in extra profits and still remains below the competitors and the ROM’s regular hours
To have startup events and programming, it will cost about $1500. This includes promotions, food and beverages, performer fees, faculty rental, setup, and production (aauw.org). During and after each event, there will be accounting for what money is spent, where the most money went to, and how much is left.
The second option for the festival is to increase the ticket prices. It has been observed that the tickets for Writers at Woody Point festival get sold out within hours due to its attraction. Hence, the business can increase the ticket prices for the customers. In this regard, the festival can offer tier based pricing i.e. selling exclusive tickets at higher prices. The exclusive ticket holders can enjoy all events including writers contest, musical performances and art exhibitions. Nonetheless, this alternative is not as viable as the previous one because high price might detract the customers.
Imagine playing a Final Four basketball game in front of record 143,387 people. Each one of those people paid at least $1,151.98 per ticket according to CBS Detroit and TiqIQ. Not to mention 16.4 million were watching on tv. The NCAA signed a contract in 2010 with Turner Sports for $10.8 billion for the right to broadcast games on tv and to show the final four. Another fact about the game that fans payed over one thousand dollars for is that head coaches of the games were paid a combined $12,628,032 that year.
All hosts MUST COMPLETE a PRELIMINARY APPLICATION to host a Remy Kennel Club sanctioned event. After it is approved the applicant will be issued an Event License Number, and the Application Fee ($100.00 +$50.00 each additional show) will be due, to lock-in the applicant's date, location and staff. They will then be sent a Formal Application to continue the process. Applicants may NOT begin advertising their event until they have completed the Formal Application and have FINAL approval from the Remy Kennel Club. Application to host a show (included) and send it back along with all the other necessary paperwork to host a show in order to get your show approved. Once approved you will receive an email from the RKC stating your show was
We will raise the funds needed for our program and service goals by organizing music festivals and partnering with theaters, music halls. A special sales team will be formed, with a starting pay of $12 the hour, and for each $250,000 raise a 5% share for the team (4 or 5 persons), this team will target government agencies with budget for this purpose, private sector, and private donors. A
I would assume that even if his attendance increased, he was offering a lower price so he wouldn’t be bringing in as much money to increase the total revenue, along with the price of tickets dropping I would assume that his revenue dropped.
This prior race day, IMS roughly had 300,000 people on race day. Typically, general admission is 40 dollars, (300,000 * 40) this has already brought in 12 million, which would be used to pay bills and other things that go out to the economy. Vendors hurry
According to, Skills for Business Decisions, “Cost-volume-profit (CVP) analysis examines changes in profits in response to changes in sales volumes, costs, and prices.” (Kimmel P.D. 2009) A company’s profit is the CVP profit equation of Profit = Revenue – Expenses. A Cost-volume-profit (CVP) analysis consists of five basic components that include:
New ways of revenue generation: Seats are generally sold at full face value, Sponsors from Corporations.
Part 158 – allows airports enplaning more than 2,500 passengers per year to charge passengers up to $4.50 per each flight segment but not more than $18.00 per round trip ticket (Price & Forrest, 2012). PFC funds are collected by the airlines, forwarded to the airports by the collecting airlines, and must be expended by airports for projects directly related to safety, security, capacity, noise reduction, and carrier competition enhancement (Price & Forrest, 2012).
1. Assess the decisions made by the hotel’s management in relation to the various offers received