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Required: a. Using the worksheet below, determine what will be the contribution of the expanded lecture series given these estimates. b. Are there other factors

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Required: a. Using the worksheet below, determine what will be the contribution of the expanded lecture series given these estimates. b. Are there other factors the director should consider before making a decision? Additional advertising, adequate lecturer and staff Food and beverage expenses Rental costs Complete this question by entering your answers in the tabs below. Are there other factors the director should consider before making a decision? other factors the director should consider before making a decision? Required: a. Using the worksheet below, determine what will be the contribution of the expanded lecture series given these estimates. b. Are there other factors the director should consider before making a decision? Complete this question by entering your answers in the tabs below. Using the worksheet below, determine what will be the contribution of the expanded lect Are there other factors the director should consider before making a decision? One of the major activities of the City Art Museum (CAM) is a Neighborhood Outreach Program, which was developed both as a public service and to market the museum and its other programs. One of the Outreach offerings, which is popular with both city and suburban residents, is the weekly Evening Lecture Series. The Series provides lectures on local art and history in various locations throughout the greater metropolitan area. A new museum director has been hired with the goal to make the museum more selfsustaining and less reliant on donations and government grants. One of the director's first actions was to ask the museum staff to put together detailed financial information on the individual activities. The result, shown in the accompanying table, indicates that the series operates at a loss. The museum director is considering a proposal by the head of the Neighborhood Outreach Program to keep the Evening Lecture Series but expand it by offering a Weekend Lecture Series as well. The Weekend Series would be offered in a single location downtown near the museum itself. The program head estimates that the attendance of the combined Series (Evening and Weekend) would be double that of the current Evening Series. The revenue of the combined Series would be 90 percent higher because of some price discounts that would be offered. Because the Weekend Series would be new, a more intensive advertising campaign would be required. The director estimates that advertising costs for the combined Series would be 150 percent higher than their current level. Lecturer fees and expenses will increase by only 75 percent, because of the larger rooms used on the weekend. Staff operating costs will increase by 25 percent. Rental costs for the Weekend Series will be $14,000 annually. Total food and beverage costs will increase by 60 percent with the new Series. The larger program will require an increase in Museum overhead of $10,000. Allocated museum overhead for the combined Series will be $37,000 annually

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