Columbia Arena Company: Operating Budget 2015 2016 Revenus: Rent from Sports Teams Rent from Events Equipment Rent Concession (Gross) Merchandise (Gross) Advertising & Sponsorship Naming Rights Box Office Suite Revenue Club Seat Revenue Ticket Fees Parking Total Revenues: Less COGS: Concession COGS Merchandise COGS Total COGS Gross Profit Operating Expenses: Personnel G&A Non-Reimbursed Event Costs Utilities Insurance Maintenance $ 465,000.00 $ 465,005.50 $ 729,000.00 $ 729,005.50 $ 27,600.00 $ 27,605.50 $ 2,512,000.00 $ 2,612,480.00 $ 244,600.00 $ 244,600.00 $ 580,400.00 580,400.00 $ 327,000.00 $ 327,000.00 $ 150,560.00 $ 150,558.50 $ 781,700.00 $ 781,700.00 $ 549,360.00 $ 549,360.00 $ 654,000.00 $ 653,998.50 $ 482,010.00 $ 482,008.50 $ 7,503,230.00 $7,603,722.00 $ 1,507,300.00 $1,507,304.50 $ 122,300.00 $ 122,302.50 $ 1,629,600.00 $1,629,607.00 $5,873,630.00 $5,974,115.00 $ 981,000.00 $ 981,002.50 $ 218,000.00 $ 218,002.50 $ 163,500.00 $ 163,500.00 $ 490,500.00 $ 490,508.00 $ 272,500.00 $ 272,500.00 $ 369,800.00 $ 369,802.50 Utilities Insurance Maintenance Contract Services Marketing and Promotion Management Fee Reserve Total Operating Expenses Operating Income (Loss): $ 490,500.00 $ 490,508.00 $ 272,500.00 $ 272,500.00 $ 369,800.00 $ 369,802.50 $ 119,900.00 $ 119,900.00 $ 218,000.00 $ 218,000.00 $ 109,000.00 $ 109,000.00 $ 163,500.00 $ 163,500.00 $ 3,105,700.00 $3,105,715.50 $ 2,767,930.00 $ 2,868,399.50 you to 2. After you have calculated the 2016 budget (see Problem 1), suppose your boss asks revise it so that overall revenues increase by 4% and operating expenses decrease by 1.5%. Based on current trends in facility management, what revenues do you anticipate can be increased? What expenses can be decreased? a. b. Use the 2016 budget that you created in Problem 1 and create a new 2016 budget based on the revenue increases and expense decreases as outlined in Problem 2 and your work on Problem 2a. Columbia Arena Company: Operating Budget 2015 2016 Revenus: Rent from Sports Teams Rent from Events Equipment Rent Concession (Gross) Merchandise (Gross) Advertising & Sponsorship Naming Rights Box Office Suite Revenue Club Seat Revenue Ticket Fees Parking Total Revenues: Less COGS: Concession COGS Merchandise COGS Total COGS Gross Profit Operating Expenses: Personnel G&A Non-Reimbursed Event Costs Utilities Insurance Maintenance $ 465,000.00 $ 465,005.50 $ 729,000.00 $ 729,005.50 $ 27,600.00 $ 27,605.50 $ 2,512,000.00 $ 2,612,480.00 $ 244,600.00 $ 244,600.00 $ 580,400.00 580,400.00 $ 327,000.00 $ 327,000.00 $ 150,560.00 $ 150,558.50 $ 781,700.00 $ 781,700.00 $ 549,360.00 $ 549,360.00 $ 654,000.00 $ 653,998.50 $ 482,010.00 $ 482,008.50 $ 7,503,230.00 $7,603,722.00 $ 1,507,300.00 $1,507,304.50 $ 122,300.00 $ 122,302.50 $ 1,629,600.00 $1,629,607.00 $5,873,630.00 $5,974,115.00 $ 981,000.00 $ 981,002.50 $ 218,000.00 $ 218,002.50 $ 163,500.00 $ 163,500.00 $ 490,500.00 $ 490,508.00 $ 272,500.00 $ 272,500.00 $ 369,800.00 $ 369,802.50 Utilities Insurance Maintenance Contract Services Marketing and Promotion Management Fee Reserve Total Operating Expenses Operating Income (Loss): $ 490,500.00 $ 490,508.00 $ 272,500.00 $ 272,500.00 $ 369,800.00 $ 369,802.50 $ 119,900.00 $ 119,900.00 $ 218,000.00 $ 218,000.00 $ 109,000.00 $ 109,000.00 $ 163,500.00 $ 163,500.00 $ 3,105,700.00 $3,105,715.50 $ 2,767,930.00 $ 2,868,399.50 you to 2. After you have calculated the 2016 budget (see Problem 1), suppose your boss asks revise it so that overall revenues increase by 4% and operating expenses decrease by 1.5%. Based on current trends in facility management, what revenues do you anticipate can be increased? What expenses can be decreased? a. b. Use the 2016 budget that you created in Problem 1 and create a new 2016 budget based on the revenue increases and expense decreases as outlined in Problem 2 and your work on Problem 2a