NorthShore Pharmacy, and its manager Madeline Manketra, are having some financial trouble. In an effort to help this, Madeline has developed a plan to open a short-term, new event in the store. In this event, they will have some presentations to the public by famous health and wellness personalities in an empty room the pharmacy currently has. As part of her position, Madeline plans to be responsible for all. of the programming. She will spend much of her time this year developing this program. Below is a preliminary budget created by Madeline for the speakers event within the store. After Madeline created this budget and saw a projected loss, she threw her hands up and almost gave up the entire idea. However, you suspect her budget is not analyzing incremental profits appropriately: Additional Information: Estimated attendance is 12,000 patrons, and ticket price for the speakers would be $10. Madeline has allocated 25% of her and, her assistant manager Willow's, yearly salary to this budget as they will be working on this project from January-March. Everyone who comes in this pharmacy pays $4 parking (this fee is collected in the parking lot but it is a revenue of the pharmacy) because it is in such a busy area of the city (assume every person drives a car), and the tickets to watch the speakers costs a further $10. Approximately 35% of the people who are estimated to attend the speakers would have come to the pharmacy whether the speakers were there or not, but now that they are here, they also pay the extra $10 and see the speaker. ( 65% are coming specifically for the speakers, and would not have come at all without them). 1) Describe some specific things that the board of this pharmacy (if it had one), its management, and its staff might have as their responsibilities, 1 responsibility each. Please make your answer specific to this pharmacy. ( 3 marks) 2) Provide an incremental profit analysis of this event using only the differential revenues and expenses, to replace Madeline's budget. Explain to me why you have added or removed any amounts by discussing the types of revenues/costs they might be. Does the speakers event appear to be a good addition for the store? (4 marks) 3) Analysis of prior data indicates that 40% of individuals in the store make a purchase at the novelty gift section, and the average purchase price is $8. The novelty gift section has an existing contribution margin ratio on its products of 55%. Does this affect the profitability of the speakers event, and if so, how? ( 2 marks) 4) We do not have data on which of these expenses specifically are fixed, mixed, or variable, so we will not use those categories to calculate anything in this section, but, theoretically, if the number of speakers doubled, which of the expenses given above would you expect to change, and how? ( 2 marks) 5) Calculate the average amount spent by a speaker event attendee including all data and questions above. Using this, what would be the break even point of the speakers event (in number of attendees)? What is the margin of safety ratio of the budget? What does this mean? ( 4 marks) 6) The owner of the store is considering giving Madeline a flat salary bonus of $10,000 if they have over 12,000 attendees, because of her creativity in thinking of this idea. Discuss the financial pros and cons of this bonus. ( 2 marks)