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ASSESSMENT ACTIVITY A - CASE STUDY CHARITY BALL Assessment Instructions: Activity A comprises a total of nine exercises with corresponding questions....

ASSESSMENT ACTIVITY A - CASE STUDYCHARITY BALL


Assessment Instructions:

Activity A comprises a total of nine exercises with corresponding questions. Please answer the questions in the space provided in relation to the case study material. Please the complete a spread sheet with nine tabs for each of the exercises required with the following instructions:-


·      Copy and paste the format of each practical exercise in to your excel sheet, source documents should be copied in to the appropriate area of the spread sheet as you are required to link figures from this information.

·      Each exercise should be labelled appropriately and interlink (Formulae) with corresponding exercises if in the same case study.

·      All exercises should be completed with the appropriate formulae.

·      Attach your spreadsheet for the entirety of Assessment Activity A below.



Assessment Activity A Calculation Spreadsheet:

(Insert as an Object here)



Case study Part one

Please read the case study in relation to Assessment Activity A:


You've been appointed the project manager for organising and running a charity ball. The ball will be held in the local town hall, a beautiful historic building with a large, vaulted ceiling in the main hall. The charity organisation for which you're running the ball wants a black tie, gala event with music, dancing and entertainment, as well as a charity auction. The ball will be held on the last Saturday in October, and they hope to sell 500 tickets.


You're responsible for organising the provision of food and beverages for the night as well as a master of ceremonies, entertainment and music. The charity will source all items for the auction. 


The charity organisation's goals are to hold a successful event and make a reasonable profit from the ball and the auction to assist them in their charity work. 


As part of the planning process you must prepare a series of budgets to help achieve these goals. Initially, you need to calculate expenses to determine the final selling price for the ball tickets. An initial estimated figure of $150 to $200 has been discussed. However, you must confirm if this is appropriate and what profits will eventually be donated to the charity as a result. You will report your initial budgets to an event committee comprising representatives of the charity organisation.



Task 1: Case Study Scenario Part One

·    Read and analyse the case study scenario.

·    Answer all the questions.


Q1:           What are the goals and objectives of the charity organisation holding this event?








Q2:           What budgets do you need to prepare to help you achieve these goals?









Q3:           Q5: Please research 4 factors, 2 internal or 2 external, and discuss how they could affect the budget performance.



Factor

impact

1)





2)





3)





4)












Q4:           What type(s) of data or information do you need to assist in the preparation of your budgets? Where could you find it?


Information/data required

Sources

e.g. Prices - food and beverages

Provide link to supplier/pricelist or other source
















Q5: Please research 4 other factors, internal or external, and discuss how they could affect the budget performance.



Factor

impact

1)





2)





3)





4)












Task 2: Case Study Scenario Part Two

ðRead the updated information on the following case study scenario update.

ðRespond to the four exercises and continue all calculations on your prepared spreadsheet as instructed

ðIn the exercises you'll need to calculate hire costs, prepare an expense budget, calculate wages and total labour costs.


Case study update


After conducting extensive research, you've sourced the following information to help you prepare an expenses and labour budget.


You've received quotes from suppliers for the following items in Table A:




Expense item

Quote ($)

Comments

Venue hire

3,500.00

Main hall and stage

Postage/stationery

350.00


Telephone

350.00


Event uniforms (F&B only)

750.00

Printed event t-shirt for service staff

Floral arrangements

3,900.00

6 x large stands, 42 x table centres

Lighting and stage hire

6,900.00

Stage, spot, dance floor

Audiovisual equipment hire

4,500.00

Microphones, data projector, screens, sound systems for entertainment

Equipment lease

1,790.00

Food preparation and service equipment

Master of ceremonies

800.00

6 hours including auction

Consultant fees

3,500.00


(Source: Table A)



Exercises:


Using the information in table A, complete the following exercises 1 and 2:

 



Task 2.1: Calculate linen expenses


One of the expenses incurred will be for the hire of linen for the event. Using the information below, calculate the linen hire costs.


Linen type

Price per item

$

Quantity

Cost

$

Round tablecloths

16.50

42


Trestle tablecloths

16.50

10


Table overlays

11.50

42


Napkins

1.80

500


Chair covers

6.00

500


Total linen hire costs




Task 2.2: Prepare an expense budget

 

Based on the quotes provided by suppliers and your calculations, prepare an expense budget for the event.


Expense budget

Expense item

$

Venue hire


Postage/stationery


Telephone


Event uniforms (F&B only)


Floral arrangements


Lighting hire


Audiovisual equipment hire


Equipment lease


Master of ceremonies


Consultant fees


Linen hire


Total expenses






Case study update: Labour Costs


All cooks, cooks' assistants and food and beverage service staff will be hired through a hospitality labour hire company for the duration of the event only. The costs quoted by the company include all penalties, workers' compensation, WorkCover and other on-costs. However, there is an additional overtime penalty of $10 per hour for all hours worked after the first eight hours of any given day.


You will need staff over a two-day period:

·    Friday - for room set-up and food preparation 

·    Saturday - for the day of the event.


Job role

No. of staff

Rostered hours per person

Pay rate per hour



Friday

Saturday

Friday

$

Saturday

$

Cook A

2

8

8

30.00

35.00

Cook B

2

8

10

30.00

35.00

Kitchen assistant 

2

6

8

20.00

25.00

Kitchen hand 

2


8

20.00

25.00

F&B waiter A

7

8

8

25.00

30.00

F&B waiter B

16


8

25.00

30.00

Bar attendant

2

6

6

25.00

30.00

Bar attendant

1


9

25.00

30.00

(Source: Table B)


In addition to labour hire costs, you employ two supervisors for the event. These are staff you have recruited personally and you pay a flat rate for the two days of $40.00 per hour. You anticipate they will both work 12 hours each day.


Security is also required on the night with two crowd controller/security staff employed through another staffing agency. You will need 24-hour security from 3 pm Friday due to some of the charity auction items being stored at the venue overnight. Their hourly rate is $40.00 on Friday and $50.00 on Saturday and Sunday. All rates are from midnight to midnight. 


Job role

No. of staff

Rostered hours per person

Pay rate per hour



Friday

Saturday

Friday

$

Sat/Sun

$

Security A

1

3 pm to 11 pm

3 pm to 11 pm

40.00

50.00

Security B

1

11 pm to 7 am (Sat)

6 pm to 2 am (Sun)

40.00

50.00

Security C

1


7 am to 3 pm

40.00

50.00

(Source: Table C)


Exercises:


Using the information in table B and C, complete the following exercises 3 and 4:




Task 2.3: Calculate F&B labour costs

 

Based on the information provided, calculate the total food and beverage wage costs incurred from the labour hire company for the event.


Job role

Wages

Wages per person

No. staff

Total wages


Friday

$

Saturday

$

Overtime

$

$


$

Cook A



 


2


Cook B





2


Kitchen assistant



 


2


Kitchen hand 



 


2


F&B waiter A



 


7


F&B waiter B



 


16


Bar attendant





2


Bar attendant





1


Total F&B wages





 

Task 2.4: Calculate total labour costs

Calculate the total labour costs for the event.


Job role

Wages

Total wages


Friday

$

Saturday

$

Overtime


$

Supervisor A





Supervisor B





Security A





Security B





Security C





Total F&B wages





Total event wages




·    Read the updated information on the following case study scenario.

·    Respond to the four exercises and continue all calculations on your prepared spreadsheet as instructed

·    Complete exercises five and six which require you to calculate food and beverage costs, using the information provided.


Task 2.5: Calculate food costs

 

Please note the following:


·      A four-course meal with wine, beer, soft drinks and juices will be included in the ticket price. 

·      Meals will be served on a 50/50 basis except for the tapas appetiser, which is a shared platter. An additional 60 main meals are required to cover staff and entertainers' meals.

·      Beverages include a variety of red and white wines to match each course, bottled light and heavy beer, post-mix soft drinks and orange juice. 

·      Standard recipes have been costed for each course and an individual cost per serve determined.





Using the information provided, complete the following exercises 5 and 6:


 

Calculate food costs including food cost per head, assuming 500 customers bought the tickets and attended the charity ball.

 

Menu item

Cost x 1 serve

$

No. serves required

Food cost

$

Tapas platter

8.76

3 per table x 42 tables


Warm tandoori beef salad

3.84

250


Stuffed agnolotti parcels

2.96

250


Mediterranean chicken breast

6.23

280


Mustard and macadamia rack of lamb

7.21

280


White and dark chocolate torte

2.25

250


Marinated strawberry roulade

1.95

250


Tea/coffee

0.30

500


Petits fours

0.30

500


Total food costs


Food cost per head 




Task 2.6: Calculate beverage costs

 

Calculate beverage costs including beverage cost per head.

 

Beverage item

Cost per item per bottle/serve

Forecasted requirements

Beverage cost

$

Sparkling wine

$12.62

90


Sauvignon Blanc

$14.67

100


Chardonnay

$13.20

120


Botrytis Riesling

$19.59

80


Merlot

$9.83

80


Shiraz

$10.52

80


Cabernet Sauvignon

$13.90

110


Light beer (750 ml)

$4.59

70


Heavy beer (750 ml)

$4.79

40


Soft drink

$0.16

400


Juice

$0.22

200


Total beverage costs


Beverage cost per head 




Task 2.7.1: Prepare event budgets

·    Read the updated information on the following case study scenario.

·    Respond to the exercise seven which requires you to calculate revenue and continue all calculations on your prepared spreadsheet as instructed

·    Answer all written questions.



The event committee has asked you to prepare two alternative revenue statement budgets. The budgets will be based on two different ticket selling prices: $150.00 or $200.00. They wish to determine the most feasible and profitable alternative for their organisation.


It has also been decided that a specific percentage of ticket sales revenue is to be spent on additional expenses such as advertising, printing, decorating the venue and entertainment expenses for the event. These expenses need to be included in the revenue statement budgets.


Additional expenses

% of revenue

Advertising

1%

Printing

0.25%

Room decoration

3%

Entertainment

5%

 



Exercises:

Using the provided information, complete the following exercise 7:

Calculate the revenue for both ticket prices

 

No. of tickets sold

Ticket price = $150.00

Ticket price = $200.00

500




Prepare alternative revenue statement budgets using the information you have accumulated so far.


Alternative 1

% of sales

Alternative 2

% of sales


500 tix x $150


500 tix x $200


Sales

$

%

$

%

Revenue from ticket sales





Cost of goods sold





Food cost





Beverage cost





Total cost of goods





Gross profit





Expenses





Labour costs





Venue hire





Postage/stationery





Telephone





Event uniforms (F&B only)





Floral arrangements





Lighting hire





Audiovisual equipment hire





Equipment lease





Master of ceremonies





Consultant fees





Linen hire





Advertising





Printing





Room decor





Entertainment





Total expenses





Profit/loss






Questions


Using the provided information, complete the following questions:



Q1: Do you think either of the budget options presented meets the charity organisation's stated goals? Please discuss








Q2: What recommendations would you make to the event committee to help them achieve their goals?









Q3: Please send a draft budget email to your colleagues and manager asking for input to finalise the budget.



Email screenshot to departments, draft budget




(insert here)











Task 2.7.2: Negotiate final budget

You will need to discuss with the event committee and negotiate the final budget.

Please prepare a meeting agenda and role play the meeting in class in teams of four.


The meeting members will be Chair and co-chair of the event committee, you (event manager and the F&B Manager or head chef)


Insert the finalized document below



Meeting agenda template






Agenda consultation


(insert here)


Please agree on follow up meeting after the event to review the performance against the budget over the project/budget life cycle. (after the final calculations have been made)


Please send an email to all required departments after the final budget numbers have been decided on and insert the email below.





Email screenshot to departments




(insert here)


Task 2.8: Adjust financial commitments

·    Read the updated information on the following case study scenario.

·    Complete exercises 8 to 10 which require you to recalculate budgets, prepare a final profit and loss report and a cash flow statement and continue all calculations on your prepared spreadsheet as instructed

·    Answer all written questions.


Case study update


After meeting with the event committee and discussing potential methods of reducing expenses and maximising profits, the following decisions have been made.


·    Ticket prices will be $175.00 per person unless profits are below $25,000 in the final budget.

·    The advertising allowance is to be raised to 3% and printing to 0.5%.

·    Entertainment expenses will remain the same at 5%. The band contracted to play during the meal has offered its services for free as a donation to the charity.

·    Room decoration expenses will be increased to $3,000.

·    Lighting and audiovisual expenses are to be decreased by $1,000 each.

·    Linen hire expenses are to be reduced. Chair covers and overlays will not be used for the event.

·    A major liquor supplier has offered to supply all wine for the event in return for acknowledgement on printed materials such as menus and posters.

·    The catering equipment supplier to be hired for the event has also offered to supply all equipment free of charge for the same acknowledgements.


Please see the below expense report source: 


Expense

Amount

$

Comments

August



Lighting hire

3,000.00

Deposit to secure booking

AV equipment hire

2,000.00

Deposit to secure booking

Room decorations

500.00

Deposit to secure booking

Advertising

500.00


Printing

95.00





September



Advertising

1,000.00


Printing

300.00


Entertainment

1,500.00

Deposit to secure booking

Venue hire

1,500.00

Deposit to secure booking




October



Food purchases

6,534.75


Postage/stationery

301.50


Telephone

300.00


Event uniforms

750.00

Paid in full on pick-up

Floral arrangements

3,900.00

Paid in full on delivery

Linen hire

1,758.00

Paid in full on delivery

Advertising

556.00


Room decorations

2,150.00

Paid in full on delivery

Entertainment

2,000.00

Paid in full on day of event

Venue hire

2,000.00

Balance paid on day of event

Master of ceremonies

800.00

Paid in full on day of event




November



Food purchases

1,290.45


Beverage purchases

545.90

$620.90 less returns

Labour costs

14,870.00

Payment in full

Postage/stationery

25.50


Telephone

95.00


Lighting hire

2,900.00

Balance paid on return

AV equipment hire

1,500.00

Balance paid on return




Outstanding invoices as at 15 November


Consultant fees

3,500.00

Invoiced 15.11, yet to be paid




Revenue: ticket sales



August

2,100.00


September

31,500.00


October 

47,600.00


Payments still outstanding

2,100.00

One table not paid, invoice outstanding

(Source: Table D)


 

Exercises:


Using the provided information, complete the following exercises 8 to 10:

 

Exercise 8: Recalculate budgets

 

We must incorporate the changes into our budgets by recalculating or removing the items discussed. The final budget can then be presented to the event committee.


Please complete the linen hire.

Linen type

Price per item

$

Quantity

Cost

$

Round tablecloths

16.50

42


Trestle tablecloths

16.50

10


Napkins

1.80

500


Total linen hire costs



Please complete the beverage costs.

Beverage item

Cost per bottle/serve

Forecasted requirements

Beverage cost

$

Light beer (750 ml)

$4.59

70


Heavy beer (750 ml)

$4.79

40


Soft drink

$0.16

400


Juice

$0.22

200


Total beverage costs


Beverage cost per head 







Task 2.9: Prepare adjusted event budget


Please complete the revenue statement budget.


Alternative 1

% of sales


500 tix x $175.00


Sales

$

%

Revenue from ticket sales



Cost of goods sold



Food costs



Beverage costs



Total cost of goods



Gross profit



Expenses



Labour costs



Venue hire



Postage/stationery



Telephone



Event uniforms (F&B only)



Floral arrangements



Lighting hire



Audiovisual equipment hire



Equipment lease



Master of ceremonies



Consultant fees



Linen hire



Advertising



Printing



Room decorations



Entertainment



Total expenses



Profit/loss





 

Exercise 9: Prepare profit and loss report

 

Prepare the final profit and loss report.

 

Profit and loss report

Budget

Actual

Variance


$

$

$

%

Sales

500 tickets

476 tickets



Revenue from ticket sales





Cost of goods sold





Food costs


7,825.20



Beverage costs


545.90



Total cost of goods


8,371.10



Gross profit





Expenses





Labour costs


14,870.00



Venue hire


3,500.00



Postage/stationery


327.00



Telephone


395.00



Event uniforms (F&B only)


750.00



Floral arrangements


3,900.00



Lighting hire


5,900.00



Audiovisual equipment hire


3,500.00



Master of ceremonies


800.00



Consultant fees


3,500.00



Linen hire


1,758.00



Advertising


2,056.00



Printing


395.00



Room decorations


2,650.00



Entertainment


3,500.00



Total expenses


47,801.00



Profit/loss







 

Exercise 10: Prepare a cash flow statement

 

Using source table D and the case study update, please complete a cash flow statement.


Cash flow report as at 15 November


August 

$

September

$

October

$

November

$

Opening bank balance

0.00




Cash in: sales





Revenue from ticket sales

2,100.00




Cash out: expenses





Food purchases





Beverage purchases





Labour costs





Venue hire





Postage/stationery





Telephone





Event uniforms (F&B only)





Floral arrangements





Lighting hire

3,000.00




Audiovisual equipment hire

2,000.00




Master of ceremonies





Consultant fees





Linen hire





Advertising

500.00




Printing

95.00




Room decorations

500.00




Entertainment





Total cash outflow





Closing bank balance 





Outstanding expenses




3,500.00

Outstanding income




2,100.00

Anticipated final bank balance








Questions


Using the provided information, complete the following questions:


Q1: Once the final budget has been approved, what steps do you need to take to set the project in motion and whom should you communicate the budget outcomes to?








Q2: After the event you have to prepare a report to the event committee on the outcomes of the gala ball. 

Please create a power point presentation comprising of 5 slides which you could present during presentation to the event committee.


a)     Please explain in detail below how you see the outcome of the event including all significant deviations. 







b) Please create a power point presentation comprising of a minimum of 5 slides which you could present during presentation to the event committee.









Power point presentation final P/L report


(insert here)




Q3: Which accounting software could you have used for this activity and what would be the benefits of using accounting software for your business?

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