Kigali Club offers athletic court facilities to the public through four locations in the metropolitan area, each with 1,800 to 2,500 members. Revenue is generated from annual membership fees and hourly court fees. Kigali Club is considering changing its membership and fee structure From 1st February in an attempt to change its cash receipts. Under the new plan, only annual membership fees will be paid and members can use the courts as often as they want. The two types of membership will be: Individual $250 Family $300 The fees will be collected in advance at the time of the membership application. All new memberships will be sold under the new plan. Current memberships will be honoured until they expire. A special promotion campaign will be instituted to attract new members and to encourage current members to the new membership plan immediately. The annual fees for individuals and family memberships will be reduced to $200 and $300 respectively during the two months of promotion in March and April. All memberships sold or renewed within this period will be for 15 months instead of the usual 12 months. It is estimated that 60-70% of present members would continue with the club, with 45% converting immediately to the new plan while the rest would continue until their memberships expire. The loss of members would be offset within six months of instituting the new plan. Required Draw the (1) sales budget and (2) the cash budget for Kigali Club
Kigali Club offers athletic court facilities to the public through four locations in the metropolitan area, each with 1,800 to 2,500 members. Revenue is generated from annual membership fees and hourly court fees.
Kigali Club is considering changing its membership and fee structure From 1st February in an attempt to change its cash receipts. Under the new plan, only annual membership fees will be paid and members can use the courts as often as they want. The two types of membership will be:
Individual $250
Family $300
The fees will be collected in advance at the time of the membership application. All new memberships will be sold under the new plan. Current memberships will be honoured until they expire.
A special promotion campaign will be instituted to attract new members and to encourage current members to the new membership plan immediately.
The annual fees for individuals and family memberships will be reduced to $200 and $300 respectively during the two months of promotion in March and April. All memberships sold or renewed within this period will be for 15 months instead of the usual 12 months.
It is estimated that 60-70% of present members would continue with the club, with 45% converting immediately to the new plan while the rest would continue until their memberships expire. The loss of members would be offset within six months of instituting the new plan.
Required
Draw the (1) sales budget and (2) the
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