The mission statement reads a concert its better live

This preview shows page 1 - 4 out of 6 pages.

goal that each customer has a pleasant experience. The mission statement reads: “a concert… it’s better live. In the last few years, ALLTELL Pavilion staged shows by Dave Mathews, Toby Keith, Santa, Aerosmith, Jimmy Buffet, and many other national artists. While the audience for a Dave Mathews concert is likely to be different from other shows, ALLTELL considers each audience to market Other critical success factors include clean and attractive grounds, concession sales, merchandise sales, traffic flow, adequate parking, and courteous security personnel.
To develop unique products and services, companies often invest heavily in research and development - In this case, ALLTEL’s will allow the Pavilion to achieve its goal of annual growth in operating income. ALLTELL Tickets to Sell to Break Even To determine the breakeven point, ALLTELL must understand the impact paying ticket holders and comp ticket holders have on revenue and profits. To determine total costs, we first have to separate each into their variable (10% Revenue) and fixed components. Talent Costs $160,635 Direct Costs $4,448 Parking Contract $17,826 Concession Contract $43,356 Merchandise Contract $17,826 TOTAL DIRECT COSTS $226,265 Operating Expenses Total Production Expense $15,506 Total Operations Expense $14,991 Total Other Variable Expense $14,323 Total Advertising Expense $20,030 TOTAL OPERATING EXPENSES $64,850 Mixed (Ancillary) Costs Variable Fixed Total Parking .1 x $19,767=$1,977 $4,448-$1,977=$2,471 $4,448 Concession .1 x $79,273=$43,356 $43,356-$7,927=$35,429 $43,356 Merchandise .1 x $36,428=$3,643. $17,826-$3,643=$14,183 $17,826 TOTAL: $13,547 $52,083 Fixed Costs Total Fixed Ancillary Fees $52,083 Production $15,506
Operations $14,991 Advertising $20,030 TOTAL FIXED COSTS $263,245 VARIABLE COSTS Insurance Expense/person $.17 COGS: Concession/person $.35 COGS: Merchandise/person $1.12 COGS: Parking/person $.08 Other Variable Expenses $.02 Total Variable Ancillary Fees $1.31 TOTAL VARIABLE COSTS $3.05 The variable cost per attendee is $3.05. The contribution depends on whether the individual paid

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture