Alltel pavilion case essay

What role does CVP analysis and operating leverage play in contract negotiations with different types of performers fixed-fee or per capita? Pace Entertainment and Cellar Door Inc. Bringing Concerts to Reality A concert becomes reality in many steps.

After the somewhat disappointing first year, she was determined to exceed the budgeted profit in the coming year. This was the second year since Ms. When total traffic grows, for a given level of After the somewhat disappointing first year, she was determined to exceed the budgeted profit in the coming year.

Term Papers Tagged With: The flash report projects total revenues including ticket sales, parking, food, and merchandise based on per capita drop count rates. SFX is one of the largest diversified promoters, producers, and venue operators for live entertainment events in the United States.

In addition, Pam was frustrated by the lack of clear guidelines for contract negotiations with artists, for setting ticket prices, and in dealing with unexpected low ticket sales for certain concerts.

The Flash Report then projects total revenues including parking, food, and merchandise based on per capita drop count rates. The break even analysis for requirement 2a: Pam uses the flash report to plan potential concerts and to evaluate the success of concerts already presented.

Funding and Flash Report The sources of funding for the Pavilion are ticket revenues, concession food revenues, merchandising revenues, parking revenues, sponsorship revenues, and other.

These are then added to the direct costs for concessions, merchandise, parking, and insurance to determine total operating expenses. This move brought together both worlds of the entertainment business. The demand for the outdoor facility came about because the rapidly growing city of Raleigh lacked a major entertainment complex.

Exhibit 1 shows the stage and seating of the amphitheater. What role does CVP analysis and operating leverage play in contract negotiations with different types of performers fixed-fee or per capita? What role does CVP analysis and operating leverage play in contract negotiations with different types of performers fixed-fee or per capita?

Finally, the budget of each department sales, marketing, and operations is reviewed by the accounting department, which provides overall financial anagement of the project. For example, the parking service passes out flyers for upcoming events.

The rates are up percent over the last five years, while the budgets per show are only up 15 percent over this time. Marketing also coordinates with the operations department to effectively manage the activities on show days. In contrast, the artist paid a fixed-fee is guaranteed the same fee whether or 20, people attend the capacity of the Pavilion is approximately 20, attendance.

Case 9-4: Cost Volume Profit (CVP) Analysis and Strategy: The ALLTEL Pavilion

Yet, the operating results are below the budgeted goal. Ticket sales are in four ticket categories: While not all evenls expected at the time of preparing the budget for the year, there were no major developed exactly as urprises during the year.

It is also important because of the increased cost of advertising. Browse hundreds of Finance tutors.

Assume the show is expected to draw 6, paying ticket holders. It has 78 theater-style VIP boxes that can accommodate 4, 6, or 8 people. These companies now maintain good working relationships within SFX. A flash report is a projection of costs and revenues for a scheduled concert.

However, they also are highly dependent upon the assumptions used to generate the inputs into the CVP analyses. What role does CVP analysis and operating leverage play in contract negotiations with different types of performers fixed-fee or per capita?

The advertising rates in the Raleigh-Durham region are comparable to the rates in Washington, D. SFX develops measures of performance and profitability for each advertising media, by region.

The parking, food concession, and merchandise operations are outsourced to other service providers, so the direct costs for parking, merchandise and concessions are determined based on contracts with the service providers that include both a percentage 10 percent of applicable revenues and a fixed fee.

This was the second year since Ms. Some artists are paid on a fixed-fee basis, while others are paid on a per capita basis. Directly in front of sections 4, 5, 8, and 9 is seating with an elevated floor that provides excellent views of the stage for patrons with disabilities and additional seating for the hearing or visually impaired.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.

Issues in Accounting Education, November The ALLTEL Pavilion Case: Strategy and CVP Analysis EXHIBIT 1 ALLTEL Pavilion Stage and Seating The Pavilion can accommodate 20, fans with 7, reserved seats directly in front of the stage (covered seating in sections 1 through 9 and VIP seating) and another 13, on the spacious.

ISSUES IN ACCOUNTING EDUCATION Vol. 19, No.

The Alltel Pavilion Case: Strategy and Cvp Analysis

4 November pp. – The ALLTEL Pavilion Case: Strategy and CVP Analysis Edward Blocher and Kung H. Chen ABSTRACT: The ALLTEL Pavilion case is intended for the undergraduate management accounting or cost accounting course and the M.

B. A. management accounting course. Answer to alltel pavilion case still need an answer please. Requirements: 1.

How would you describe the competitive strategy of th. Case Cost Volume Profit (CVP) Analysis and Strategy: The ALLTEL Pavilion Question The ALLTEL Pavilion in Raleigh, North Carolina is an outdoor amphitheater that provides live concerts to the public from April through October each year. Question Case Cost Volume Profit (CVP) Analysis and Strategy: The ALLTEL Pavilion.

The ALLTEL Pavilion in Raleigh, North Carolina is an outdoor amphitheater that provides live concerts to the public from April through October each year.

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Alltel pavilion case essay
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