A
anonymous1508
Guest
i need a person good in costing to answer my problem.
Being a die-hard fan of pop sensation Britney Spears, Nimrod traveled to the United States last Christmas break and invited Ms. Spears to hold a concert at the Luneta Park for this year’s Christmas Eve celebration. Due to Nimrod’s persistence and good looks, Ms Spears agreed to hold the concert. Nimrod agreed to pay Ms. Spears P=1,000,000.00 per song for a scheduled 10-song concert whose ticket price was tagged at P=2,500 per ticket. Nimrod would hire his favorite Filipino band, “Yano” to play for Ms. Spears with the “Street Boys” as back-up singers and dancers. Yano agreed to a fee of P=90,000 for one night; in addition, the Street Boys were contracted at P=50,000.00 for every 10 songs played, pro-rated or proportional in case changes are made (example - changing to more than 10 songs would mean a fee greater than P=50,000). Nimrod would rent two sets of band instruments from Yamaha for P=40,000 per set.
The venue for the concert will be the Luneta Park field in front of the statue of Dr. Jose Rizal. 10,000 square meters of the field would be rented at a rental fee of P=10 per square meter per day. Nimrod estimated that, at a maximum, 2 people can fit in 1 square meter and he computed that the audience was to be contained within 6,000 square meters. The stage and the props for the concert was estimated to reach P=2,000,000.00 and Nimrod would hire 75 carpenters to construct the stage at the rate of P=500 per worker per day. Light and sound expenses were estimated for P=20.00 and P=15.00 per square meter respectively for the whole rented space (field). To operate all the equipment plus maintenance duties during the concert, Nimrod plans on hiring 50 part time technicians and laborers priced at P=300.00 per person per day. Construction will be done during the daytime of the concert date.
Costumes for Ms. Spears was canvassed at P=12,000.00 per wardrobe and Nimrod planned to produce 2 wardrobe sets. Advertising would reach P=500,000.00 and radio promotions would amount to P=300,000.00. Because of an all-out marketing campaign, Nimrod was sure that he will be able to sell all the tickets he will print and he estimated that 70% of those who will buy the tickets are sure to make it to the concert. Nimrod would print tickets numbering at full capacity at a printing cost of P5.00 per ticket. Other costs for the concert were summed at P=2,000,000.00 which includes utilities, parking fees, video coverage and food for all the people involved in the concert.
To help Nimrod fund the concert, he plans on soliciting for sponsorships from various companies. Toyota Motors promised to give P=1,000,000.00 since Ms. Spears was famous for endorsing their new product line, VIOS, in the consumer market. Lorin’s Patis was also contacted and promised to provide P=500,000.00 to Nimrod for every time Britney Spears mentioned their company product on stage. Nimord ingeniously told Britney that he had a very sick friend named Lorin S. Patis and he would appreciate if Ms. Spears would mention her name before each song. Believing Nimrod’s story, Ms. Spears promised to follow Nimrod’s instructions. A third sponsor, KuCORNICK’s, would give P=100 to Nimrod for every audience who will watch the concert in exchange for product sampling of their new “sisig-flavored” corn snacks. Nimrod even plans on tampering with the smoke machine on stage to emit the scent of freshly cooked “sisig”.
Nimrod is also preparing souvenirs for the audience comprising a souvenir program featuring a life-size poster of Ms. Spears posting with Nimrod during their meeting in Waikiki Beach Hawaii. The souvenir program would cost P=100.00 per piece with a free promo CD of Britney Spear’s newset album costing P=100 per compact disk. However, Nimrod plans on only 75% of the audience would get a copy of the souvenir program and only 50% of the souvenir programs would include the free compact disk. Nimrod also had an agreement with the manufacturer of the souvenir program and compact disks that he can return any program or disk that were not given without any charges.
QUESTIONS
1.Create a Costing Analysis using the contribution margin format.
Income Statement
Variable Revenuesxxxxxxxxxx
Less : Variable Expensesxxxxxxxxxx
Contribution Marginxxxxxxxxx
Add : Fixed Revenuesxxxxxxxxxx
Less : Fixed Costsxxxxxxxxxx
Net Operating Incomexxxxxxxxx
2.Create a Costing Analysis using the Profit Equation format
Total Revenuesxxxxxxxxxx
Less : Total Variable Costsxxxxxxxxxx
Less : Total Fixed Costsxxxxxxxxxx
Net Profitxxxxxxxxxx
3.What is the cost per person who will attend the concert? What is the profit per person who will attend the concert?
4.Provide the cost equation using “number of persons who bought a ticket” as the X variable or the volume variable. Create
Being a die-hard fan of pop sensation Britney Spears, Nimrod traveled to the United States last Christmas break and invited Ms. Spears to hold a concert at the Luneta Park for this year’s Christmas Eve celebration. Due to Nimrod’s persistence and good looks, Ms Spears agreed to hold the concert. Nimrod agreed to pay Ms. Spears P=1,000,000.00 per song for a scheduled 10-song concert whose ticket price was tagged at P=2,500 per ticket. Nimrod would hire his favorite Filipino band, “Yano” to play for Ms. Spears with the “Street Boys” as back-up singers and dancers. Yano agreed to a fee of P=90,000 for one night; in addition, the Street Boys were contracted at P=50,000.00 for every 10 songs played, pro-rated or proportional in case changes are made (example - changing to more than 10 songs would mean a fee greater than P=50,000). Nimrod would rent two sets of band instruments from Yamaha for P=40,000 per set.
The venue for the concert will be the Luneta Park field in front of the statue of Dr. Jose Rizal. 10,000 square meters of the field would be rented at a rental fee of P=10 per square meter per day. Nimrod estimated that, at a maximum, 2 people can fit in 1 square meter and he computed that the audience was to be contained within 6,000 square meters. The stage and the props for the concert was estimated to reach P=2,000,000.00 and Nimrod would hire 75 carpenters to construct the stage at the rate of P=500 per worker per day. Light and sound expenses were estimated for P=20.00 and P=15.00 per square meter respectively for the whole rented space (field). To operate all the equipment plus maintenance duties during the concert, Nimrod plans on hiring 50 part time technicians and laborers priced at P=300.00 per person per day. Construction will be done during the daytime of the concert date.
Costumes for Ms. Spears was canvassed at P=12,000.00 per wardrobe and Nimrod planned to produce 2 wardrobe sets. Advertising would reach P=500,000.00 and radio promotions would amount to P=300,000.00. Because of an all-out marketing campaign, Nimrod was sure that he will be able to sell all the tickets he will print and he estimated that 70% of those who will buy the tickets are sure to make it to the concert. Nimrod would print tickets numbering at full capacity at a printing cost of P5.00 per ticket. Other costs for the concert were summed at P=2,000,000.00 which includes utilities, parking fees, video coverage and food for all the people involved in the concert.
To help Nimrod fund the concert, he plans on soliciting for sponsorships from various companies. Toyota Motors promised to give P=1,000,000.00 since Ms. Spears was famous for endorsing their new product line, VIOS, in the consumer market. Lorin’s Patis was also contacted and promised to provide P=500,000.00 to Nimrod for every time Britney Spears mentioned their company product on stage. Nimord ingeniously told Britney that he had a very sick friend named Lorin S. Patis and he would appreciate if Ms. Spears would mention her name before each song. Believing Nimrod’s story, Ms. Spears promised to follow Nimrod’s instructions. A third sponsor, KuCORNICK’s, would give P=100 to Nimrod for every audience who will watch the concert in exchange for product sampling of their new “sisig-flavored” corn snacks. Nimrod even plans on tampering with the smoke machine on stage to emit the scent of freshly cooked “sisig”.
Nimrod is also preparing souvenirs for the audience comprising a souvenir program featuring a life-size poster of Ms. Spears posting with Nimrod during their meeting in Waikiki Beach Hawaii. The souvenir program would cost P=100.00 per piece with a free promo CD of Britney Spear’s newset album costing P=100 per compact disk. However, Nimrod plans on only 75% of the audience would get a copy of the souvenir program and only 50% of the souvenir programs would include the free compact disk. Nimrod also had an agreement with the manufacturer of the souvenir program and compact disks that he can return any program or disk that were not given without any charges.
QUESTIONS
1.Create a Costing Analysis using the contribution margin format.
Income Statement
Variable Revenuesxxxxxxxxxx
Less : Variable Expensesxxxxxxxxxx
Contribution Marginxxxxxxxxx
Add : Fixed Revenuesxxxxxxxxxx
Less : Fixed Costsxxxxxxxxxx
Net Operating Incomexxxxxxxxx
2.Create a Costing Analysis using the Profit Equation format
Total Revenuesxxxxxxxxxx
Less : Total Variable Costsxxxxxxxxxx
Less : Total Fixed Costsxxxxxxxxxx
Net Profitxxxxxxxxxx
3.What is the cost per person who will attend the concert? What is the profit per person who will attend the concert?
4.Provide the cost equation using “number of persons who bought a ticket” as the X variable or the volume variable. Create