Question
Financial analyst guru that you are, you have been asked by Terry Garner to analyze the three payment options for GSI. your report must include
Financial analyst guru that you are, you have been asked by Terry Garner to analyze the three payment options for GSI. your report must include the following:
-A comparison of the breakeven points for the second and third options (% of profit/ Joint venture).
-The indifference point (in number of participants) between: Flat fee and percentage of profit, Flat fee and joint venture, and Percentage of profit and join venture.
*Note details regardig the flat fee and % of profit option can be found in requirement "2" in the textbook. Even though you haven't been assigned to answer the requirement listed in the book, you'll still need to read this one to get the details of the payment options.
(CMA Adapted) [LO 9-1, 9-2, 9-3] 9-45 CVP Analysis; Strategy: Critical Success Factors Garner Strategy Institute (GSI) presents executive-level training seminars nationally. Eastern University (EU) has approached GSI to present 40 one-week seminars during 2016. This activity level represents the maximum number of seminars that GSI is capable of presenting annually. GSI staff would present the week-long seminars in various cities throughout the United States and Canada. Terry Garner, GSI's president, is evaluating three financial options for the revenues from Eastern: accept a flat fee for each seminar, receive a percentage of Eastern's profit before tax from the semi- nars, and form a joint venture to share costs and profits
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