Download to read offline
Uploaded bybill balina
다시한겅
The document proposes a new plan to increase profits from a music tour. The plan includes increasing the number of concerts from 60 to 80, the number of t-shirts sold per concert from 30 to 50, and the number of CDs sold per concert from 30 to 50. This would boost total revenue from merchandise sales. Expenses would also rise with more concerts but profits would increase due to higher revenues from ticket sales and merchandise compared to the original plan.
다시한겅
- 1. More profit for you! Made by Yora Choi www.templete4u.co.kr
- 2.
- 3.
- 4.
- 5. 제목을 입력하십시오 www.templete4u.co.krwww.templete4u.co.kr LOGO 1 Total cost table 2 Past plan table 3 Describe of new plan 4 A new plan table
- 6. Parts change theprofit www.templete4u.co.kr Number of Concerts Number of CDs/Concert T-shirts/ concert Total Revenue
- 7. Income statement forthe tour www.templete4u.co.kr 60 concerts $500/convert $30,000 30T-shirt/concert $20/T-shirt $36,000 30CDs/concert $15/CD $27,000 $93,000 Performance revenue t-shirt sales CD sales Total Revenue INCOME STATEMENT FOR THE TOUR
- 8.
- 9. 제목을 입력하십시오 www.templete4u.co.krTEXT Increasing sale the T-shirts. The reason is most revenue come from merchandise which is sale T-shirts. Total revenue is going to be higher because the most revenue come from merchandise that if the sales of T-shirts and CDs is higher than the total revenue is going to be increase. Also the revenue going high because the number of concerts are going to be increase Increasing the number of Concerts. The reason is same Commission is still 15% whether the number of concerts are 1 or more than 1 Increasing the number of CDs. It is because the most revenue com from merchandise which is sale the CDs. T-shirts/ Concert B Number Of Concerts A Total Revenue D Number of CDs/ Concert C
- 10.
- 11. 20 concerts www.templete4u.co.kr40 t-shirts @ $20 per shirts $16,000 40 CDs @ $15 per CD $12,000 50 t-shirts @ $20 per shirts $20,000 50 CDs @ $15 per CD 15,000
- 12. 40 concerts www.templete4u.co.kr40 t-shirts @ $20 per shirts $32,000 40 CDs @ $15 per CD $24,000 50 t-shirts @ $20 per shirts $40,000 50 CDs @ $15 per CD $30,000
- 13.
- 14. Percentage of revenuewww.templete4u.co.kr 2 3 1 Performance revenue 32% Merchandise: t-shirt sales 39% Merchandise: CD sales 29% 1 2 3
- 15. Impact on Expenseswww.templete4u.co.kr 1 Internet Banner Ads 10 more Ads @ $60/Ad $600 2 Magazines 3 more Ads @ $1,000/Ad $3000 3 Total $1060 $3600
- 16.
- 17. Expenses table www.templete4u.co.krExpense $ Year $ Concert/(60) $ Concert/ (Your Strategy) Van Rental – signed a three year lease, $500/month $ 6,000 $ 100 $ 7,200 Bank loan in instruments and sound system, $600/month $ 7,200 $ 120 $ 8,400 Total Fixed Costs for Your Strategy $ 16,800 $ 60 $ 280
- 18.
- 19. Variable costs www.templete4u.co.krMore profit Strategy Make a profit Receivables Variable Costs The most revenue come from merchandise that the profit getting higher than before if the sales let higher A new makes a profit because the revenue increase through sales and decrease food and hotels $93,000(total revenue) -$70,150(total expenses) /4(number of band) = $5712.5 Increasing # of concert Increasing sales T-shirts Increasing sales CDs decreasing Food, Hotels
- 20.
- 21. Strategy www.templete4u.co.kr Moreconcert More merchandise More profit More concert More sales t-shits & CDs More profit More concert More sales merchandise More revenue 12,000 9,000 1000 # of concert they need to cover # of T-shirts&CDs In their plan # of T-shirts&CDs They need to sell
- 22. Thank you!Good bye Accounting class :p www.templete4u.co.kr LOGO www.templete4u.co.kr