It had been a quiet Monday morning for Anna Hogue, senior project manager at Flagstone Consulting. Everything seemed to be falling into place for the company's first conference, Healthcare Management in the New Millenium scheduled for October 11 and 12 in Boston. Then Ethan Tang, the staff consultant in charge of registration stuck his head in the door "Annasaid than think we may have a problem with the conference. Only 10 people have registered.Our marketing consultants told us to expect at least a registration rate from our direct mail campaign. Based on the 5.000 conference for we mailed do you think another 140 people will register in the next three weeks Anna and Ethan had worked together to develop a budget for the conference, as follows. They had budgeted for registration response ratus of 2% 3% and 4% but a response rate of 0.3% was far outside their expectations 2 Response Rate Total Per Attende 3Response Rate Total Per Attendee 5104250 $695 4% Response Rate Total Per Attendee 5139.000 $69.500 3695 $150 5150 15.000 7.500 30,000 Registration fee income Expenses Meals Conference materials Direct mail advertising Meeting room $150 22.500 11.250 75 75 15.000 6.000 6.000 6,000 4.500 4,500 4,500 500 SOO 500 500 Equipment rental Speaker Newton Smith Town Sortravel Newton 2.000 4.000 500 2.000 4.000 600 2.000 4.000 200 200 LO Compton 200 42700 326.000 200 1.200 1.000 200 53.050 350.00 1.200 1.000 200 5.200 Netinom owned concrete The 52000 at then the concepts then man so what the heat to the core This beno allado Thenated And on the wth Townsley required a $1,000 deposit upon confirmation of the original conference date. The remaining $3,000 was due upon her arrival at the conference. In the event of cancellation, the $1.000 deposit was non-refundable. Compton has agreed to speak for free. Anna thought for a second and then replied, "Ethan, based on what the marketing firm told us, at least 75% of all registrations are received a month before the conference. This response has me a bit worried. If we need to cancel the conference, we must do it before Thursday, Otherwise. It will be too late." Anna and Ethan called a couple of contacts at other organizations, who related similar experiences with low preconference registration. They indicated that medical professionals often wait until the last minute to register and that in some instances.conferences had been rescheduled and readvertised to increase registration Anna and Ethan decided they needed more information before they could make a final decision on the fate of the conference. Rescheduling it would require them to confirm the new dates with the speakers Conference facilities would also need to be secured for the new dates. Fortunately, the conference materials had not been sent to the printer yet, so the printed materials would not become obsolete. Anna and Ethan decided that if the conference were rescheduled, Flagstone would offer a reduced registration fee of $595 to companies that sent more than ane person, Anna called some of the Boston area professionals who had expressed interest in the conference but had not registered yet. Some of them indicated that they had news received the registration mailing. After contacting the marketing firm about the matter, Anna teamed that there had indeed been problems with the mailing. The marketing firm had subcontracted the mailing to a second him, which could not verify that all the materials had been mailed, Anna wondered how many other prospects hd not received the main Next, Anna arranged a conference call with all the speakers to explain what was going on. They agreed that the mailing problem could have contributed to the low resistration. All the speakers were available on December 8 and 9 and were willing to change their schedules to accommodate Flagstone their chose to hedule the conference Steve Smith indicated that he had already purchased a nonrefundable sine ticket for 5800 If the conference were rescheduled he would incur an additional too chore to chan the flight William Townsley indicated that he was already scheduled to be lo Boston on December Flagstone would not have to cover his travelenses the conference were rescheduled Ethan called the University Parks into the cuts the facilities contract Although Faites had made no parents to the hotel yet the special events coordinator reminded Eths of two points in the contract 1 A cancellation fee of $10,000 would need to be paid its contenance were canceled at this late date However, the inn would agree to wave the canciones if the contence were rescheduled within four months of the originaldate Flagstone had garanteed a minimumot ostroms confonde attendees booked fewer room Fagstone would have to pay in boditor of the momental Ethan also contacted the marketing time about doing domaines Inlicht of the problems with the earlier mallin the marketing mattered to two additional insting for a tota $1.500 Theatred to expand the mailing list to include ser presentation welder medical and schools in the That the new woulde &000 houde stratiotate Of that are expected to the reduced region Predebro-fonice station Ethan also contacted the marketing form about doing additional mailings. In light of the problems with the earlier maling the marketing firm offered to do two additional mailings for a total of $1.500. They also aprued to expand the mailing list to include several other professional organizations, as well as students at medical and nursing schools in the area. The firmestimated the new malling would reach 8.000 people and should result in a 2x registration rate. Of that 2%, 10% were expected to quality for the reduced registration fee, (b Prepare pro-forma income statements for each of the alternatives you identified in question (al. (Enter tive amounts using either a negative in preceding the number 3.-45. Do not leave any answereld bank. Enter for amounts Option 1. Hold conference as planned Option 2-Cancel the conference Option 3 - Resch conferen 5 Registration fee revenue Expenses Meals Conference materials Direct mail advertising Meeting room rental Cancellation fee Guestroom guarantee fee Equipment rental Speaker Mewton Smith Towy Speaker New Como Der It had been a quiet Monday morning for Anna Hogue, senior project manager atFlagstone Consulting Everything seemed to be falling into place for the company's first conference "Healthcare Management in the New Millenium scheduled for October 11 and 12 in Boston. Then Ethan Tang, the staff consultant in charge of registration, stuck his head in the door "Anna, said Ethan, "I think we may have a problem with the conference. Only 10 people have registered. Our marketing consultants told us to expect at least a 3% registration rate from our direct mail campaign. Based on the 5.000 conference tliers we mailed, do you think another 140 people will register in the next three weeks? Anna and Ethan had worked together to develop a budget for the conference, as follows. They had budgeted for registration response rates of 2%, 3% and 4%, but a response rate of 0.3% was far outside their expectations 2x Response Rate Total Per Attendee 3% Response Rate Total Per Attendee 4X Response Rate Total Per Attendee $69,500 $695 $104,250 $695 $139,000 5695 15.000 $150 22.500 $150 30.000 $150 7.500 11.250 75 15,000 6.000 6.000 6.000 4500 4.500 4,500 500 500 500 Registration fee income Expenses Meals Conference materials Direct mail advertising Meeting room rental Equipment rental Speaker fees Newton Smith Townsley Speaker travel Newton Smith Townsley Compton Total expenses Netico 500 2000 1000 600 2.000 4000 600 2.000 4.000 200 1.200 1000 200 142.700 $26.800 1200 1000 200 53950 $50,300 200 1.200 1000 200 65200 may resto deposituen entration of the original contract dateThe remaining 53.000 a or the content in the event ancellation the 100 deposition efundable En dator h H : honore the te for the Related theme lessoa need to cancel the act indicated Townsley required a $1000 deposit upon conformation of the original conference date. The remaining $3.000 was due upon her arrival at the conference. In the event of cancellation, the $1.000 deposit was non-refundable Compton has agreed to speak for free Anna thought for a second, and then replied, "Ethan, based on what the marketing firm told us, atleast 75% of all registrations are received a month before the conference. This response has me a bit worried. If we need to cancel the conference, we must do it before Thursday Otherwise, it will be too late." Anna and Ethan called a couple of contacts at other organizations, who related similar experiences with low preconference registration. They indicated that medical professionals often wait until the last minute to register and that in some instances, conferences had been rescheduled and re-advertised to increase registration Anna and Ethan decided they needed more information before they could make a final decision on the fate of the conference Rescheduling it would require them to confirm the new dates with the speakers Conference facilities would also need to be secured for the new dates. Fortunately, the conference materials had not been sent to the printer yet so the printed materials would not become obsolete. Anna and Ethan decided that if the conference were rescheduled. Flagstone would offer a reduced registration fee of 5595 to companies that sent more than one person. Anacalled some of the Boston-area professionals who had expressed interest in the conference but had not registered yet. Some of them indicated that they had never received the registration mailing. After contacting the marketing firm about the matter. Anna learned that there had indeed been problems with the mailing The marketing firm had subcontracted the mailing to a second firm, which could not verify that all the materials had been mailed. A wondered how many other prospects had not received the mailing Next. Anna arranged a conference call with all the speakers to explain what was going on. They agreed that the mailing problem.could have contributed to the low registration All the speakers were available on December 8 and 9. and were willing to change their schedules to accommodate Flagstone if the firm chose to reschedule the conference, Steve Smith indicated that he had already purchased a nonrefundable airline ticket for $800. If the conference wire rescheduled, he would incur an additional $100 charge to change the flight William Townsley indicated that he was Stready scheduled to be in Boston on December 7, so Flagstone would not have to cover his travel expenses if the conference were rescheduled Ethan called the University Parks Inn to discuss the facilities contract. Although Flagstone had made no payments to the hotel yet the special events coordinator reminded Ethan of two points in the contract Acancellation fee of $10,000 would need to be paid the conference were canceled at this late date However, the inn would agree to waive the cancellation fee if the conference wererescheduled within four months of the originaldate Fagstone had garantered a minimum of 60 puestrooms conference attendees booked fewer rooms, Flagstone would have to pay an additional $500 for the meeting room rental alontacted the entirabou do additional mines in light of the problems with the earlier the interacted to datwo additional for a total 51 500 They to expand the even other pressional organizations relansat medical and nursing schools in hand then Horeca and should result in a station rate led to reducidation de Questions or 12 -11 Ethinalsocoritate marketingum about doilingsortepron with railing the marlarting from offered to do two additional mailing for a total of $1,500. They also agreed to expand the mailing list to include wral other professional organizations, as well as students at medical and nursing schools in the area. The firm estimated the new mailings will reach 8,000 people and should result in a 2 registration rate. Of that 2% 10% were expected to qualify for the reduced registration fee (hi Prepare pro forma income statements for each of the alternatives you identified in question (al. (Enter Native amounts asingeither a negative si preceding the murmberes.-45. Do not leave my er Selfunk. Enter o for amnews Option 1 - Hold conferences planned Option 2-Cancel the conference Option 3 Resch conferen 5 Registration feerever Expenses Meals Conference materials Direct mail advertising Meeting for rental Cancellation Guestroom sarantee Equipment rental Speaker tes Newton Smith Towy Speaker Newton Smith Trade cam BE It had been a quiet Monday morning for Anna Hogue, senior project manager at Flagstone Consulting Everything seemed to be falling into place for the company's first conference Healthcare Management in the New Millenium scheduled for October 11 and 12 in Boston. Then Ethan Tang the staff consultantincture of registration, stuck his head in the door "Anna" said Ethan "I think we may have a problem with the conference Only 10 people have registered. Our marketing consultants told us to expect at least a registration rate from our direct mail campaign Based on the 5.000 conference fliers we mailed, do you think another 140 people will register in the next three weeksAnna and Ethan had worked together to develop a budget for the conference as follows. They had budgeted for registration response rates of 2% 3and 4%. but a response rate of 0.3% was far outside their expectations 2% Response Rate Total Per Attendee $69.500 5695 3% Response Rate Total Per Attendee 4X Response Rate Total Per Attendee 5104250 $695 $139,000 5695 5150 $150 30,000 $150 15.000 7.500 22.500 11.250 75 75 15.000 75 6.000 6000 6.000 4500 4.500 500 4.500 SOO 500 Registration fee income Expenses Meals Conference materials Directa advertising Meeting room Tental Equipment rental Speaker Fees Newton Smith Townsley Speaker travel Newton Smith Townsley Compton Totales Not income 500 2000 4000 500 2.000 4000 600 2.000 4000 200 1210 1.000 200 42700 $26.800 200 1200 1000 200 53,950 550.000 200 1200 1000 200 65.200 $75.000 Townsley required a $1.000 deposit upon como contenentate Therming 3.000 wat que pon berartival at the conference in the evento cancel the $1.000 depohonefundab Compton has greed to speak for tree na touch for a second and the bad on what the most Pentations are received a month before the contin Thiet word the conference we must (before Otherwise beso tancada.co cotacts at other on Who stration. The dicated that medies professionals until the des conference had bescheduled andre advertito Avand Erhanderided the needed more information beton they wefato conferentie Bestudeerohen Com be who need to be conforte pens the brinted at once COS Newton Smith Townsley Campton Total expenses Net Income 200 1200 1000 200 42700 $26.800 2000 1,200 1000 200 52.950 $50,300 200 1200 1,000 200 45.200 $73,800 Townsley required a $1,000 deposit upon confirmation of the original conference date. The remaining $3.000 wa due upon her arrival at the conference. In the event of cancellation, the $1.000 deposit was non-refundable bCompton has agreed to speak for free. Anna thought for a second, and then replied, "Ethan, based on what the marketing firm told us, at least 75% of all registrations are received a month before the conference. This response has me a bit worried. If we need to cancel the conference, we must do it before Thursday Otherwise, it will be too late Anna and Ethan called a couple of contacts at other organizations, who related similar experiences with low preconference registration. They indicated that medical professionals often wait until the last minute to register and that in some instances. conferences hud been rescheduled and re-advertised to increase registration Anna and Ethan decided they needed more information before they could make a final decision on the fate of the conference. Rescheduling it would require them to confirm the new dates with the speakers Conference facilities would also need to be secured for the new dates. Fortunately, the conference materials had not been sent to the printer yet, so the printed materials would not become obsolete. Anna and Ethan decided that if the conference were rescheduled. Flagstone would offer a reduced registration fee of 5595 to companies that sent more than one person Arecalled some of the Boston-area professionals who had expressed interest in the conference but had not Tegistered yet. Some of them indicated that they had never received the registration maiting. After contacting the marketing firm about the matter. Anna teamed that there has indeed been problems with the mailing. The marketint frmhad subcontracted the mailing to a second firm which could not verity that all the materials had been mailed Anna wondered how many other prospects had not receved them in Next Anna arranged conference call with all the speakers to explain what was going on. They areed that the malling problem.could have contributed to the lowregistration. All the speakers were available on December 89 and we willing to change their schedules to accommodate Finestone if the fimchose to reschedule the conference Steve Smith indicated that he had already purchased a nonrefundable airline ticket for 5800 the conference were rescheduled, he would incuran actional 100 charge to change the flight W Townsey indicated that he was aiready scheduled to be in Boston on December 7.so Flagstone would not have to cover his travel expenses the conference were rescheduled Ethan called the University Parks inn to discuss the facilities contrat Alhousiastene had maderents to the hotel yet the special events coordinator reminded Ethanat two pints in the contract cancellation fee of $10.000 would need to be paid the conference were canced at the However, the innwould are to wave the cancellation fee if the conterese were scheduled within four fronths of the originaldate Fietstone hidranteed a minuman 60 conference and bookedreweren Farstone would have to pay additionat 5.000 for the conting om 2 Ecocted to doing welcoming in that the roblem with malttamatten offertowa dintor atatator $1100 The Oro Well Gm odprtation Dett dictatoto ho Ethan also contacted the marketing firm about doing additional mailings. In light of the problems with the earlier mailing the marleeting firm offered to do two additional mailings for a total of $1,500. They also agreed to expand the mailing list to include several other professional organizations, as well as students at medical and nursing schools in the area. The firm estimated the new mailings would reach 8,000 people and should result in a registration rate. Of that 2%, 10% were expected to qualify for the reduced registration fee. (6) Prepare proforma income statements for each of the alteratives you identified in question (al (Enter negative amounts using either a negative sign preceding the numbers. -45. Do not leave any Serfeld blank. Enter for amounts Option 1 - Hold conference as Option 2 Cancel the Option 3 - Reschi planned conference conferen Registration $ $ fee revenue Expenses Meals Conference materials Direct mail advertising Meeting room rental Cancellation fee Guestroom Quarantee fee Equipment rental Speaker fees Newton Smith Townsley Speaker Newton Salt Town Toro ODER Com It had been a quiet Monday morning for Anna Hogue, senior project manager at Flagstone Consulting. Everything seemed to be falling into place for the company's first conference, Healthcare Management in the New Millenium scheduled for October 11 and 12 in Boston. Then Ethan Tang, the staff consultant in charge of registration stuck his head in the door "Annasaid than think we may have a problem with the conference. Only 10 people have registered.Our marketing consultants told us to expect at least a registration rate from our direct mail campaign. Based on the 5.000 conference for we mailed do you think another 140 people will register in the next three weeks Anna and Ethan had worked together to develop a budget for the conference, as follows. They had budgeted for registration response ratus of 2% 3% and 4% but a response rate of 0.3% was far outside their expectations 2 Response Rate Total Per Attende 3Response Rate Total Per Attendee 5104250 $695 4% Response Rate Total Per Attendee 5139.000 $69.500 3695 $150 5150 15.000 7.500 30,000 Registration fee income Expenses Meals Conference materials Direct mail advertising Meeting room $150 22.500 11.250 75 75 15.000 6.000 6.000 6,000 4.500 4,500 4,500 500 SOO 500 500 Equipment rental Speaker Newton Smith Town Sortravel Newton 2.000 4.000 500 2.000 4.000 600 2.000 4.000 200 200 LO Compton 200 42700 326.000 200 1.200 1.000 200 53.050 350.00 1.200 1.000 200 5.200 Netinom owned concrete The 52000 at then the concepts then man so what the heat to the core This beno allado Thenated And on the wth Townsley required a $1,000 deposit upon confirmation of the original conference date. The remaining $3,000 was due upon her arrival at the conference. In the event of cancellation, the $1.000 deposit was non-refundable. Compton has agreed to speak for free. Anna thought for a second and then replied, "Ethan, based on what the marketing firm told us, at least 75% of all registrations are received a month before the conference. This response has me a bit worried. If we need to cancel the conference, we must do it before Thursday, Otherwise. It will be too late." Anna and Ethan called a couple of contacts at other organizations, who related similar experiences with low preconference registration. They indicated that medical professionals often wait until the last minute to register and that in some instances.conferences had been rescheduled and readvertised to increase registration Anna and Ethan decided they needed more information before they could make a final decision on the fate of the conference. Rescheduling it would require them to confirm the new dates with the speakers Conference facilities would also need to be secured for the new dates. Fortunately, the conference materials had not been sent to the printer yet, so the printed materials would not become obsolete. Anna and Ethan decided that if the conference were rescheduled, Flagstone would offer a reduced registration fee of $595 to companies that sent more than ane person, Anna called some of the Boston area professionals who had expressed interest in the conference but had not registered yet. Some of them indicated that they had news received the registration mailing. After contacting the marketing firm about the matter, Anna teamed that there had indeed been problems with the mailing. The marketing firm had subcontracted the mailing to a second him, which could not verify that all the materials had been mailed, Anna wondered how many other prospects hd not received the main Next, Anna arranged a conference call with all the speakers to explain what was going on. They agreed that the mailing problem could have contributed to the low resistration. All the speakers were available on December 8 and 9 and were willing to change their schedules to accommodate Flagstone their chose to hedule the conference Steve Smith indicated that he had already purchased a nonrefundable sine ticket for 5800 If the conference were rescheduled he would incur an additional too chore to chan the flight William Townsley indicated that he was already scheduled to be lo Boston on December Flagstone would not have to cover his travelenses the conference were rescheduled Ethan called the University Parks into the cuts the facilities contract Although Faites had made no parents to the hotel yet the special events coordinator reminded Eths of two points in the contract 1 A cancellation fee of $10,000 would need to be paid its contenance were canceled at this late date However, the inn would agree to wave the canciones if the contence were rescheduled within four months of the originaldate Flagstone had garanteed a minimumot ostroms confonde attendees booked fewer room Fagstone would have to pay in boditor of the momental Ethan also contacted the marketing time about doing domaines Inlicht of the problems with the earlier mallin the marketing mattered to two additional insting for a tota $1.500 Theatred to expand the mailing list to include ser presentation welder medical and schools in the That the new woulde &000 houde stratiotate Of that are expected to the reduced region Predebro-fonice station Ethan also contacted the marketing form about doing additional mailings. In light of the problems with the earlier maling the marketing firm offered to do two additional mailings for a total of $1.500. They also aprued to expand the mailing list to include several other professional organizations, as well as students at medical and nursing schools in the area. The firmestimated the new malling would reach 8.000 people and should result in a 2x registration rate. Of that 2%, 10% were expected to quality for the reduced registration fee, (b Prepare pro-forma income statements for each of the alternatives you identified in question (al. (Enter tive amounts using either a negative in preceding the number 3.-45. Do not leave any answereld bank. Enter for amounts Option 1. Hold conference as planned Option 2-Cancel the conference Option 3 - Resch conferen 5 Registration fee revenue Expenses Meals Conference materials Direct mail advertising Meeting room rental Cancellation fee Guestroom guarantee fee Equipment rental Speaker Mewton Smith Towy Speaker New Como Der It had been a quiet Monday morning for Anna Hogue, senior project manager atFlagstone Consulting Everything seemed to be falling into place for the company's first conference "Healthcare Management in the New Millenium scheduled for October 11 and 12 in Boston. Then Ethan Tang, the staff consultant in charge of registration, stuck his head in the door "Anna, said Ethan, "I think we may have a problem with the conference. Only 10 people have registered. Our marketing consultants told us to expect at least a 3% registration rate from our direct mail campaign. Based on the 5.000 conference tliers we mailed, do you think another 140 people will register in the next three weeks? Anna and Ethan had worked together to develop a budget for the conference, as follows. They had budgeted for registration response rates of 2%, 3% and 4%, but a response rate of 0.3% was far outside their expectations 2x Response Rate Total Per Attendee 3% Response Rate Total Per Attendee 4X Response Rate Total Per Attendee $69,500 $695 $104,250 $695 $139,000 5695 15.000 $150 22.500 $150 30.000 $150 7.500 11.250 75 15,000 6.000 6.000 6.000 4500 4.500 4,500 500 500 500 Registration fee income Expenses Meals Conference materials Direct mail advertising Meeting room rental Equipment rental Speaker fees Newton Smith Townsley Speaker travel Newton Smith Townsley Compton Total expenses Netico 500 2000 1000 600 2.000 4000 600 2.000 4.000 200 1.200 1000 200 142.700 $26.800 1200 1000 200 53950 $50,300 200 1.200 1000 200 65200 may resto deposituen entration of the original contract dateThe remaining 53.000 a or the content in the event ancellation the 100 deposition efundable En dator h H : honore the te for the Related theme lessoa need to cancel the act indicated Townsley required a $1000 deposit upon conformation of the original conference date. The remaining $3.000 was due upon her arrival at the conference. In the event of cancellation, the $1.000 deposit was non-refundable Compton has agreed to speak for free Anna thought for a second, and then replied, "Ethan, based on what the marketing firm told us, atleast 75% of all registrations are received a month before the conference. This response has me a bit worried. If we need to cancel the conference, we must do it before Thursday Otherwise, it will be too late." Anna and Ethan called a couple of contacts at other organizations, who related similar experiences with low preconference registration. They indicated that medical professionals often wait until the last minute to register and that in some instances, conferences had been rescheduled and re-advertised to increase registration Anna and Ethan decided they needed more information before they could make a final decision on the fate of the conference Rescheduling it would require them to confirm the new dates with the speakers Conference facilities would also need to be secured for the new dates. Fortunately, the conference materials had not been sent to the printer yet so the printed materials would not become obsolete. Anna and Ethan decided that if the conference were rescheduled. Flagstone would offer a reduced registration fee of 5595 to companies that sent more than one person. Anacalled some of the Boston-area professionals who had expressed interest in the conference but had not registered yet. Some of them indicated that they had never received the registration mailing. After contacting the marketing firm about the matter. Anna learned that there had indeed been problems with the mailing The marketing firm had subcontracted the mailing to a second firm, which could not verify that all the materials had been mailed. A wondered how many other prospects had not received the mailing Next. Anna arranged a conference call with all the speakers to explain what was going on. They agreed that the mailing problem.could have contributed to the low registration All the speakers were available on December 8 and 9. and were willing to change their schedules to accommodate Flagstone if the firm chose to reschedule the conference, Steve Smith indicated that he had already purchased a nonrefundable airline ticket for $800. If the conference wire rescheduled, he would incur an additional $100 charge to change the flight William Townsley indicated that he was Stready scheduled to be in Boston on December 7, so Flagstone would not have to cover his travel expenses if the conference were rescheduled Ethan called the University Parks Inn to discuss the facilities contract. Although Flagstone had made no payments to the hotel yet the special events coordinator reminded Ethan of two points in the contract Acancellation fee of $10,000 would need to be paid the conference were canceled at this late date However, the inn would agree to waive the cancellation fee if the conference wererescheduled within four months of the originaldate Fagstone had garantered a minimum of 60 puestrooms conference attendees booked fewer rooms, Flagstone would have to pay an additional $500 for the meeting room rental alontacted the entirabou do additional mines in light of the problems with the earlier the interacted to datwo additional for a total 51 500 They to expand the even other pressional organizations relansat medical and nursing schools in hand then Horeca and should result in a station rate led to reducidation de Questions or 12 -11 Ethinalsocoritate marketingum about doilingsortepron with railing the marlarting from offered to do two additional mailing for a total of $1,500. They also agreed to expand the mailing list to include wral other professional organizations, as well as students at medical and nursing schools in the area. The firm estimated the new mailings will reach 8,000 people and should result in a 2 registration rate. Of that 2% 10% were expected to qualify for the reduced registration fee (hi Prepare pro forma income statements for each of the alternatives you identified in question (al. (Enter Native amounts asingeither a negative si preceding the murmberes.-45. Do not leave my er Selfunk. Enter o for amnews Option 1 - Hold conferences planned Option 2-Cancel the conference Option 3 Resch conferen 5 Registration feerever Expenses Meals Conference materials Direct mail advertising Meeting for rental Cancellation Guestroom sarantee Equipment rental Speaker tes Newton Smith Towy Speaker Newton Smith Trade cam BE It had been a quiet Monday morning for Anna Hogue, senior project manager at Flagstone Consulting Everything seemed to be falling into place for the company's first conference Healthcare Management in the New Millenium scheduled for October 11 and 12 in Boston. Then Ethan Tang the staff consultantincture of registration, stuck his head in the door "Anna" said Ethan "I think we may have a problem with the conference Only 10 people have registered. Our marketing consultants told us to expect at least a registration rate from our direct mail campaign Based on the 5.000 conference fliers we mailed, do you think another 140 people will register in the next three weeksAnna and Ethan had worked together to develop a budget for the conference as follows. They had budgeted for registration response rates of 2% 3and 4%. but a response rate of 0.3% was far outside their expectations 2% Response Rate Total Per Attendee $69.500 5695 3% Response Rate Total Per Attendee 4X Response Rate Total Per Attendee 5104250 $695 $139,000 5695 5150 $150 30,000 $150 15.000 7.500 22.500 11.250 75 75 15.000 75 6.000 6000 6.000 4500 4.500 500 4.500 SOO 500 Registration fee income Expenses Meals Conference materials Directa advertising Meeting room Tental Equipment rental Speaker Fees Newton Smith Townsley Speaker travel Newton Smith Townsley Compton Totales Not income 500 2000 4000 500 2.000 4000 600 2.000 4000 200 1210 1.000 200 42700 $26.800 200 1200 1000 200 53,950 550.000 200 1200 1000 200 65.200 $75.000 Townsley required a $1.000 deposit upon como contenentate Therming 3.000 wat que pon berartival at the conference in the evento cancel the $1.000 depohonefundab Compton has greed to speak for tree na touch for a second and the bad on what the most Pentations are received a month before the contin Thiet word the conference we must (before Otherwise beso tancada.co cotacts at other on Who stration. The dicated that medies professionals until the des conference had bescheduled andre advertito Avand Erhanderided the needed more information beton they wefato conferentie Bestudeerohen Com be who need to be conforte pens the brinted at once COS Newton Smith Townsley Campton Total expenses Net Income 200 1200 1000 200 42700 $26.800 2000 1,200 1000 200 52.950 $50,300 200 1200 1,000 200 45.200 $73,800 Townsley required a $1,000 deposit upon confirmation of the original conference date. The remaining $3.000 wa due upon her arrival at the conference. In the event of cancellation, the $1.000 deposit was non-refundable bCompton has agreed to speak for free. Anna thought for a second, and then replied, "Ethan, based on what the marketing firm told us, at least 75% of all registrations are received a month before the conference. This response has me a bit worried. If we need to cancel the conference, we must do it before Thursday Otherwise, it will be too late Anna and Ethan called a couple of contacts at other organizations, who related similar experiences with low preconference registration. They indicated that medical professionals often wait until the last minute to register and that in some instances. conferences hud been rescheduled and re-advertised to increase registration Anna and Ethan decided they needed more information before they could make a final decision on the fate of the conference. Rescheduling it would require them to confirm the new dates with the speakers Conference facilities would also need to be secured for the new dates. Fortunately, the conference materials had not been sent to the printer yet, so the printed materials would not become obsolete. Anna and Ethan decided that if the conference were rescheduled. Flagstone would offer a reduced registration fee of 5595 to companies that sent more than one person Arecalled some of the Boston-area professionals who had expressed interest in the conference but had not Tegistered yet. Some of them indicated that they had never received the registration maiting. After contacting the marketing firm about the matter. Anna teamed that there has indeed been problems with the mailing. The marketint frmhad subcontracted the mailing to a second firm which could not verity that all the materials had been mailed Anna wondered how many other prospects had not receved them in Next Anna arranged conference call with all the speakers to explain what was going on. They areed that the malling problem.could have contributed to the lowregistration. All the speakers were available on December 89 and we willing to change their schedules to accommodate Finestone if the fimchose to reschedule the conference Steve Smith indicated that he had already purchased a nonrefundable airline ticket for 5800 the conference were rescheduled, he would incuran actional 100 charge to change the flight W Townsey indicated that he was aiready scheduled to be in Boston on December 7.so Flagstone would not have to cover his travel expenses the conference were rescheduled Ethan called the University Parks inn to discuss the facilities contrat Alhousiastene had maderents to the hotel yet the special events coordinator reminded Ethanat two pints in the contract cancellation fee of $10.000 would need to be paid the conference were canced at the However, the innwould are to wave the cancellation fee if the conterese were scheduled within four fronths of the originaldate Fietstone hidranteed a minuman 60 conference and bookedreweren Farstone would have to pay additionat 5.000 for the conting om 2 Ecocted to doing welcoming in that the roblem with malttamatten offertowa dintor atatator $1100 The Oro Well Gm odprtation Dett dictatoto ho Ethan also contacted the marketing firm about doing additional mailings. In light of the problems with the earlier mailing the marleeting firm offered to do two additional mailings for a total of $1,500. They also agreed to expand the mailing list to include several other professional organizations, as well as students at medical and nursing schools in the area. The firm estimated the new mailings would reach 8,000 people and should result in a registration rate. Of that 2%, 10% were expected to qualify for the reduced registration fee. (6) Prepare proforma income statements for each of the alteratives you identified in question (al (Enter negative amounts using either a negative sign preceding the numbers. -45. Do not leave any Serfeld blank. Enter for amounts Option 1 - Hold conference as Option 2 Cancel the Option 3 - Reschi planned conference conferen Registration $ $ fee revenue Expenses Meals Conference materials Direct mail advertising Meeting room rental Cancellation fee Guestroom Quarantee fee Equipment rental Speaker fees Newton Smith Townsley Speaker Newton Salt Town Toro ODER Com