Question

The University of Cincinnati Center for Business Analytics is an outreach center that collaborates with industry partners on applied research and continuing education in business analytics. One of the programs offered by the center is a quarterly Business Intelligence Symposium. Each symposium features three speakers on the real-world use of analytics. Each of the corporate members of the center (there are currently 10) receives ten free seats to each symposium. Nonmembers wishing to attend must pay $75 per person. Each attendee receives breakfast, lunch, and free parking. The following are the costs incurred for putting on this event Rental cost for the auditorium: Registration Processing Speaker Costs: 3$800 Continental Breakfast Lunch Parking: $150 $8.50 per person $2,400 $4.00 per person $7.00 per person $5.00 per person a The Center or Business Analytics is considering a refund policy for no-shows. No refund would be given or members who do not attend but for nonmembers who do not attend 50% of the price will be refunded. Build a spreadsheet model in Excel that calculates a profit or loss based on the number of nonmember registrants. Extend the model you developed for the Business Intelligence Symposium to account for the fact that historically, 25% of members who registered do not show and 10% of registered nonmembers do not attend. The center pays the caterer for breakfast and lunch based on the number of registrants not the number of attendees). However, the center only pays for parking or those who attend what is the profit if each corporate member registers their full allotment of tickets and 127 nonmembers register? If required, round your answers to two decimal places. (b) Use a two-way data table to show how profit changes as a function of number of registered nonmembers and the no-show percentage of nonmembers. Vary number of nonmember registrants from 80 to 160 in increments of S and the percentage of nonmember no-shows from 10% to 30% in increments of 2%. In which interval of nonmember registrants does breakeven occur if the percentage of nonmember no-shows is 22%? Breakeven appears in the interval of

Answer 1

(a)

1 Given: 2 Registereation fee for Non- memebers 3 Fixed cost: 4 Rental cost for auditorium 5 Speaker cost (3 speakers) aS800 6 variable cost 7 Registeration proces 8 Continental breakfast 9 Lunch 10 Parkin 75 Number of member register Number of non-members registerations Total Number of registerations Number of non-attendee members Number of non-attendee non-memebers Number of attendee members Number of Non-attendee members 105seats) 50 127 150 2400 E2+E3 50*2590 13 E2-E6 E3-E6 8.5 12

1 Given: 2 Registereation fee for Non- memebers 3 Fixed cost: 4 Rental cost for auditorium 5 Speaker cost (3 speakers) aS800 6 variable cost 7 Registeration processin 8 Continental breakfast 9 Lunch 10 Parkin 10 5seats 50 127 S 75.0 Number of member register Number of non-members registerations Total Number of registerations Number of non-attendee members Number of non-attendee non-memebers Number of attendee members Number of Non-attendee members S 150.0 S 2,400.0 13 13 37 114 8.5 S 4.0 S 7.0 S 5.0 12

13 Calculate the profit or loss based on number of non-member registrants 14 15 Particulars 16 Total amount obtained by regitration 17 Less 18 Variable cost: 19 Registeration processin 20 Continental breakfast 21 Lunch 22 Parkin 23 Fixed costs: 24 Rental cost for auditorium 25 Speaker cost (3 speakers) @S800 26 Total cost incurred 27 Profit before refund 28 Less: Refund amount for Non-attendee Non-members 29 Net profit 30 therefore, the profit is S2,281 Amount Amount B2 E3 B7 E4 B8*E4 B9 E4 B10*(E7+E8) 150 2400 SUM(B19:B25 -C16-C26 -E6*B2)*50% -C27-C28

13 Calculate the profit or loss based on number of non-member registrants 14 15 Particulars 16 Total amount obtained by regitration 17 Less 18 Variable cost: 19 Registeration processin 20 Continental breakfast 21 Lunch 22 P 23 Fixed costs: 24 Rental cost for auditorium 25 Speaker cost (3 speakers) @S800 26 Total cost incurred 27 Profit before refund 28 Less: Refund amount for Non-attendee Non-members 29 Net profit 30 therefore, the profit is S2,281 ount Amount S 9,525.0 S1,504.50 S 708.0 S 1,239.0 S 755.0 S 150.0 S 2,400.0 S 6,756.50 S2,768.50 487.5 S 2,281.00

(b)

Units	Profit
80	-244.5
85	-27.75
90	189
95	405.75
100	622.5
105	839.25
110	1056
115	1272.75
120	1489.5
125	1706.25
130	1923
135	2139.75
140	2356.5
145	2573.25
150	2790
155	3006.75
160	3223.5

Since profit is zero between 85-90 so break even will be in the range 85-90

Break-even appears in the interval of 85 to 90 number of registered nonmembers.