Sports Consulting Pty Ltd is a company set up by sports and recreation management students to gain experience in running their own business. It had the following data for the year ended 2025.

Required
Answer each of the following independent situations.
(a) Explain how an understanding of CVP analysis would improve the performance of the manager of a sports and recreation firm like Sports Consulting Pty Ltd.
(b) As a student in a sports and recreation management degree you are required to act as the manager of Sports Consulting Pty Ltd. In setting your salary at \($20\) 000, calculate the increase in service fees to maintain the company’s profit after tax equal to at least 25% of total service fees.
(c) The marketing manager believes that by increasing variable expenses by \($100\) per client and fixed advertising expenses by \($3000\) the company will increase the number of clients by 20 per year. Would this suggestion improve profitability after tax? Explain why the suggestions will, or will not, increase the company’s profit.

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Sporting event fees (96 events) Variable expenses Contribution margin Fixed expenses Profit before tax Tax (at 30%) Profit after tax $48000 19200 28 800 16320 12 480 3744 $ 8736