EQN 2070 Study Guide - Midterm Guide: Fixed Cost, Crowd Control, Concession Stand
27 Feb 2017
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Event feasibility: test the event design. Objectives: organizational, business objectives, non-financial objectives. Operating decisions: pricing, level of service. Monitoring and correction: budget used to measure performance. Budget is based on five factors: marketing projections and estimates, general history of previous events, general economy and forecast for the future, return on your investment, types of financing, borrowed funds, prepayments, existing funds. Bolded stuff will likely be on midterm exam. Ticket sales revenue: standard price, differential prices, admission plus, corporate hospitality, entry fees. Media rights revenue: value to sponsors, promotion of event. Sponsorship revenue: seating, corporate hospitality, advertising. Value in-kind: barter for goods or services instead of cash. Merchandising revenue: t-shirts, product lines, licensing, concession stand. Fixed overhead expenses costs paid regardless of size (capital costs, venue rental, prize moneies, office rental etc. 0. Variable increase or decrease according to size of event or attendance (accommodation, transportation, printing etc. ) Portion a lump sum payment over a period of time.
