Question
Basketball Club (BC) offers basketball to its members. There are four of these clubs in the area. Each club has between 2,000 and 2,700 members.
Basketball Club (BC) offers basketball to its members. There are four of these clubs in the area. Each club has between 2,000 and 2,700 members. Revenue is derived from annual membership fees and hourly court fees. The annual membership fees are as follows:
Individual..$50
Student..$35
Family...$105
The hourly court fees vary from $8 to $12 depending upon the season and the time of day (prime versus nonprime time). The peak basketball season is considered to run from September through April. During the period, court usage averages 90 to 100 percent of capacity during prime time (5:00-9:00p.m.) and 50 to 60 percent of capacity during the remaining hours. Daily court usage during the off-season (i.e., summer) average only 20 to 40 percent of capacity.
Most of BCs memberships have September expirations. A substantial amount of the cash receipts are collected during the early part of the basketball season due to the renewal of the annual membership fees and heavy court usage. However, cash receipts are not as large in the spring and drop significantly in the summer months.
Create a revenue budget using the following template.
January February March April May June July August September October November December Individual Student Family Hourly Court Fees TOTAL January February March April May June July August September October November December Individual Student Family Hourly Court Fees TOTALStep by Step Solution
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