I need help with the following assignment. Please see attachment.
Cost–Volume–Profit Analysis
Assignment Overview
The Annie Smith Dance Center
The Director of Annie Smith Dance Center is asking for assistance with the financial aspects of running a professional group of performers. She wants financial information presented in an easy to read format and a better understanding of the profitability of the concerts and the organization as a whole.
The Annie Smith professional group features three styles of dance concerts each year. Two of the dance concerts showcase a different genre. The third performance is a Christmas Spectacular, which is the most popular and is therefore scheduled every year. The table below provides information about expected ticket sales for the performances.
| Lower Orchestra Section (A) | Upper Orchestra Section (B) | ||||||
| Descriptions | No. of Seats. | Ticket Price | Tickets sold per performance | No. of seats | Ticket Price | Tickets sold per performance | |
| Hip-Hop Performance | 150 | $85 | 100% | 450 | $50 | 90% | |
| Jazz and Tap Dance | 150 | $85 | 100% | 450 | $50 | 60% | |
| Christmas Spectacular | 150 | $125 | 100% | 450 | $50 | 100% | |
Ms. Smith has prepared a tentative schedule for the coming season. The table below also shows the type and number of performances and direct cost per type of concert.
| Descriptions | Number of Performances | Cost per Dance Concert |
| Hip-Hop Concert | 10 | $48,000 |
| Jazz and Tap Dance | 86,000 | |
| Christmas Spectacular | 20 | 22,000 |
| Total Direct Fixed Costs | $156,000 |
*Examples of direct fixed costs are costumes, rehearsals, royalties, guest artist fees, choreography, and salaries of production staff, music, and wardrobe for each of the concerts. This amount does not change with the number of performances.
Additional costs:
Variable costs associated with each performance are shown below.
| Musicians | $6,100 |
| Rental of auditorium | 2,500 |
| Dancers' compensation | 6,700 |
Annual general administrative and operating costs for the dance center are:
| Administrative staff | $185,000 |
| Insurance | 25,000 |
| Marketing | 115,000 |
| General office expenses | 90,000 |
Case Assignment
Required:
Computations (use Excel)
Summarize key financial information in a table as shown below.
Module 2 - SLP
Cost–Volume–Profit Analysis
Second part of the presentation. See background information for the Module 1 SLP.
Required:
Include the following items in your presentation:
What about special pricing for some markets or customers?
Determination of customer profitability.
Show effect on revenues and profitability based on stated assumptions.
Potential advantages and disadvantages, both financial and non-financial.
SLP Assignment Expectations
Submit a PowerPoint presentation or a Word Document. A PowerPoint presentation should have no more than six slides and a Word document cannot exceed two pages. Use words, tables, and graphs to make a succinct presentation. Document all sources and provide links at the end. It is acceptable to add another slide or page to list the sources.
Combine the submissions from prior module(s) into one file before uploading to the SLP 2 Dropbox.
SLP: Prior Assignment:
