QUESTION: A common practice in SETU was to ignore labor or personal items contributed by members and loyal supporters who typically did not ask for receipts from the organization for tax purposes. We referred to these contributions as hidden costs because they were not included in the budget nor were they recorded in the financial statements. However, in the scenario where members or supporters did not have the expertise, these functions would require paid services, and the items would have to be purchased or rented. a. Identify and provide the approximate value of human resources and personal items that were contributed by actors and patrons in the Kamala production. b. Incorporate these hidden costs, and measure their impact on the budgeted statement in Question 1 and the breakeven numbers and U.S. dollars calculated in Question 2. c. Evaluate the importance of the hidden costs mentioned in the case that were not explicit cash outlays or when the donors did not require a receipt for tax purposes.

TEXT:

INFO NEEDED:

Hall rental per week, including practices and performance $1,000 One time ticket set up fee $30 support and lighting (4 hours minimum) $30 per hour 1.5 hour per show* Sound technician (4 hours minimum) $30 per hour 1.5 hour per show** House management $60 per show Facility fees $2 per ticket Ticket convenience charges $3 per ticket Exhibit 1 Summary of the Contract with Mosesian Center for the Arts Black Box Theater *SETU would have to pay minimum of 4 hours ($120) even if SETU did not use 4 hours of support and lighting. **SETU would have to pay mimimum of 4 hours ($120) even if SETU did not use 4 hours of sound technician. Exhibit 2 Theatrical Poster for Kamala Production Ticket Sales Assumptions Estimated number of shows 4 Price per ticket adult $25 including $5 in fees Price per ticket student and senior $22 including $5 in fees Estimated percentage of adult ticket 70% Estimated percentage of student and senior ticket 30% Maximum capacity 90 seats Average occupancy per show 50%