Case Study: The ALLTEL Pavilion Case - Strategy and CVP Analysis Overview: In Module 3, part of our focus was on the use of Cost-Volume-Profit (CVP) analysis. This case will ask you to conduct cost-volume-profit analyses as part of decision maki the strategic choices of a firm. Your final written analysis should be submitted in . doc or .docx format, and should comply with APA writing requirements. Instructions: 1. Read the case The ALLTEL Pavilion Case - Strategy and CVS Analysis: The AuLTEL Pavilion Case-.Strategy and lovPilAnalysis.pdf 2. Complete the "REQUIRED" questions at the end of the case document. 3. To assist you, several resounces are provided below: PowerPoint presentation which provides guidance for the case: - Excel file which includes Exhibit 2 fffom the case -you should use this to complete your CVP analysis. You will submit your completed Excel document in addition t written case analysis. The ALL TEL Pavilion Case- Exhibit 2 in Extel x)5. 5. Please also submityyour completed Excel worksheet. 1. How would you describe the competitive strategy of the ALLTEL Pavilion? Given the firm's strategy, what are the critical success factors for the Pavilion to achicve its goal of continuous annual growth in operating income? 2. Complete two selected cost-volume-profit analyses for the show illustrated in Exhibit 2, the KFBS Allstars: a) How many tickets must the ALLTEL Pavilion sell to break even? b) How many tickets must ALLTEL sell to earn $30,000 operating income after taxes, assuming a 40 percent tax rate? 3. What should be the average ticket price for the KFBS concert if the fixed-pay fee is $200,000 and the Pavilion expects to sell 7,000 tickets and wants to earn $30,000 after 40 percent in taxes? 4. Negotiating the fee for the KFBS Allstars: fixed-pay or per capita contracts? a) What is the maximum fixed fee that the Pavilion can pay the KFBS Allstars if the Pavilion wants to earn $45,000 after 40 percent tax and expects the show to have an average ticket price of $22.12? Assume the show is expected to draw 6,000 paying ticket holders. b) What is the maximum fixed fee that the Pavilion can pay the KFBS Allstars if the Pavilion Wants to earn $45,000 after 40 percent tax and expects the show to have an average ticket price of $22.12 ? Assume, including 25 percent comp tickets, the show is expected to be a sell-out. c) Independent of (a) and (b), what is the maximum per capita fee that the Pavilion can pay the KFBS Allstars, whose concert is expected to be a sellout, if the Pavilion wants to earn $180,000 after 40 percent tax from an average ticket prico of $22.12 per ticket? 5. What role does CVP analysis and operating leverage play in contract negotiations with different REQUIRED 1. How would you describe the competitive strategy of the ALLTEL Pavilion? Given the firm's strategy, what are the critical success factors for the Pavilion to achieve its goal of continuous annual growth in operating income? 2. Complete two selected cost-volume-profit analyses for the show illustrated in Exhibit 2, the KFBS Allstars: a) How many tickets must the ALLTEL Pavilion sell to break even? b) How many tickets must ALLTEL sell to earn $30,000 operating income after taxes, assuming a 40 percent tax rate? 3. What should be the average ticket price for the KFBS concert if the fixed-pay fee is $200,000 and the Pavilion expects to sell 7,000 tickets and wants to earn $30,000 after 40 percent in taxes? 4. Negotiating the fee for the KFBS Allstars: fixed-pay or per capita contracts? a) What is the maximum fixed fee that the Pavilion can pay the KFBS Allstars if the Pavilion wants to earn $45,000 after 40 percent tax and expects the show to have an average ticket price of $22.12 ? Assume the show is expected to draw 6,000 paying ticket holders. b) What is the maximum fixed fee that the Pavilion can pay the KFBS Allstars if the Pavilion wants to earn $45,000 after 40 percent tax and expects the show to have an average ticket price of $22.12 ? Assume, including 25 percent comp tickets, the show is expected to be a sell-out. c) Independent of (a) and (b), what is the maximum per capita fee that the Pavilion can pay the KFBS Allstars, whose concert is expected to be a sellout, if the Pavilion wants to earn $180,000 after 40 percent tax from an average ticket price of $22.12 per ticket? 5. What role does CVP analysis and operating leverage play in contract negotiations with different types of performers (fixed-fee or per capita)? Case Study: The ALLTEL Pavilion Case - Strategy and CVP Analysis Overview: In Module 3, part of our focus was on the use of Cost-Volume-Profit (CVP) analysis. This case will ask you to conduct cost-volume-profit analyses as part of decision maki the strategic choices of a firm. Your final written analysis should be submitted in . doc or .docx format, and should comply with APA writing requirements. Instructions: 1. Read the case The ALLTEL Pavilion Case - Strategy and CVS Analysis: The AuLTEL Pavilion Case-.Strategy and lovPilAnalysis.pdf 2. Complete the "REQUIRED" questions at the end of the case document. 3. To assist you, several resounces are provided below: PowerPoint presentation which provides guidance for the case: - Excel file which includes Exhibit 2 fffom the case -you should use this to complete your CVP analysis. You will submit your completed Excel document in addition t written case analysis. The ALL TEL Pavilion Case- Exhibit 2 in Extel x)5. 5. Please also submityyour completed Excel worksheet. 1. How would you describe the competitive strategy of the ALLTEL Pavilion? Given the firm's strategy, what are the critical success factors for the Pavilion to achicve its goal of continuous annual growth in operating income? 2. Complete two selected cost-volume-profit analyses for the show illustrated in Exhibit 2, the KFBS Allstars: a) How many tickets must the ALLTEL Pavilion sell to break even? b) How many tickets must ALLTEL sell to earn $30,000 operating income after taxes, assuming a 40 percent tax rate? 3. What should be the average ticket price for the KFBS concert if the fixed-pay fee is $200,000 and the Pavilion expects to sell 7,000 tickets and wants to earn $30,000 after 40 percent in taxes? 4. Negotiating the fee for the KFBS Allstars: fixed-pay or per capita contracts? a) What is the maximum fixed fee that the Pavilion can pay the KFBS Allstars if the Pavilion wants to earn $45,000 after 40 percent tax and expects the show to have an average ticket price of $22.12? Assume the show is expected to draw 6,000 paying ticket holders. b) What is the maximum fixed fee that the Pavilion can pay the KFBS Allstars if the Pavilion Wants to earn $45,000 after 40 percent tax and expects the show to have an average ticket price of $22.12 ? Assume, including 25 percent comp tickets, the show is expected to be a sell-out. c) Independent of (a) and (b), what is the maximum per capita fee that the Pavilion can pay the KFBS Allstars, whose concert is expected to be a sellout, if the Pavilion wants to earn $180,000 after 40 percent tax from an average ticket prico of $22.12 per ticket? 5. What role does CVP analysis and operating leverage play in contract negotiations with different REQUIRED 1. How would you describe the competitive strategy of the ALLTEL Pavilion? Given the firm's strategy, what are the critical success factors for the Pavilion to achieve its goal of continuous annual growth in operating income? 2. Complete two selected cost-volume-profit analyses for the show illustrated in Exhibit 2, the KFBS Allstars: a) How many tickets must the ALLTEL Pavilion sell to break even? b) How many tickets must ALLTEL sell to earn $30,000 operating income after taxes, assuming a 40 percent tax rate? 3. What should be the average ticket price for the KFBS concert if the fixed-pay fee is $200,000 and the Pavilion expects to sell 7,000 tickets and wants to earn $30,000 after 40 percent in taxes? 4. Negotiating the fee for the KFBS Allstars: fixed-pay or per capita contracts? a) What is the maximum fixed fee that the Pavilion can pay the KFBS Allstars if the Pavilion wants to earn $45,000 after 40 percent tax and expects the show to have an average ticket price of $22.12 ? Assume the show is expected to draw 6,000 paying ticket holders. b) What is the maximum fixed fee that the Pavilion can pay the KFBS Allstars if the Pavilion wants to earn $45,000 after 40 percent tax and expects the show to have an average ticket price of $22.12 ? Assume, including 25 percent comp tickets, the show is expected to be a sell-out. c) Independent of (a) and (b), what is the maximum per capita fee that the Pavilion can pay the KFBS Allstars, whose concert is expected to be a sellout, if the Pavilion wants to earn $180,000 after 40 percent tax from an average ticket price of $22.12 per ticket? 5. What role does CVP analysis and operating leverage play in contract negotiations with different types of performers (fixed-fee or per capita)