CIRCULAR CLUB Your name Institution Course title Consistency of Jonathan comment with Shelley’s idea The club had an investment in the rodeo This means that club had committed money or capital to an endeavor with the expectation of obtaining an additional income or profit . He also meant that he could see it becoming profitable with a little work. It was a good investment. A fundraiser that would continue to get better each year • The comment of Jonathan Edmunds is consistent with Shelley’s idea that the club should have the fundraiser that would continue to get better each year Give back to the Community • The comment of Jonathan is not consistent with Shelley’s idea because Jonathan comment aimed at increasing the wealth of the club rather than giving back to the community. Provide the club a presence in the community • This Shelley’s idea is consistent with the comment of Jonathan because making investment in the rodeo means that the club did not loss its money instead it works on its behalf in rodeo. Computation of break even point Receipts Contributions from sponsors $25,600 Receipts from ticket sales $27,525 Total Receipts $53,125 Fixed costs $51,000 Variable costs $2,125 Total Costs $53,125 Profit/(Loss) $0 Calculation of the dollars of ticket sales needed to earn a target profit of $6,000. Receipts Contributions from sponsors $25,600 Receipts from ticket sales $33,775 Total Receipts $59,375 Fixed costs $51,000 Variable costs $2,375 Total Costs $53,375 Profit/(Loss) $6,000 Calculation of the dollars of ticket sales needed to earn a target profit of $12,000 Receipts Contributions from sponsors $25,600 Receipts from ticket sales $40,025 Total Receipts $65,625 Fixed costs $51,000 Variable costs $2,625 Total Costs $53,625 Profit/(Loss) $12,000 Facility’s ability to handle the crowd – no! • considering that there are no stipulations as to the ratio of adults and children and since the child’s price at the door is $8 and the adult advanced ticket also costs $8, • Assuming 40% of ticket sales are for $10 tickets, approximately 39% are for $8 tickets, and approximately 21% are for $6 tickets. • calculating an approximate necessary capacity as; Dollars # of Tickets $10 Tickets $8 Tickets $6 Tickets Total Sales $13,510 $13,216 $7,056 $33,782 1,351 1,652 1,176 Expenses related to Shelley's purchases of rodeo clothing. That is absolutely not a clever question given that Shelly’s having bought new clothing has absolutely no relevance to whether or not the rodeo will be profitable. However, it may be relevant to her and her friends, but not to the club. How I would encourage the Club concerning the Contestant Hospitality Tent • I would certainly encourage the club to get the catering for the Hospitality tent in exchange for the sponsor banner. • This is because it is definitely worth it to essentially be paying only $48 for catering for three days, however I do not know how much a tent would cost to rent for three days outright, but if it is more than $48, then of course they should do it. • However, if there were limited space for signs, then I would say that, unless the tent rental costs $600 or more, then it would not be worth it because they would be sacrificing revenue that could be made from the sale of the banners, which would more than pay for the tent. Steps to make rodeo profitable • Assessing the profitability of Rodeo • Analyzing individual components • Examining options • Making a plan • Setting targets and follow-up
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