Required: Prepare memo outlining your analysis, conclusions, and recommendations to help the company plan its coming season. the memo must include an analysis of the issues stated in questions a-c (below) to address the business and strategic decisions outlined in questions d and e.

C," i lms.brocku.ca ,0 Type here to search (ff-Symphony Orchestra The CT-Symphony Orchestra is a branch of the Center for Performing Arts. It performs regular concerts throughout the year and has been reasonably protable in the past. However. in recent years, concert attendance has been declining and the Orchestra is looking for ways to boost attendance. The traditional customers of the Orchestra have been the older and more afuent segment of the population that live in the suburbs. The recent boom in the high-tech sector. however, has created an afuent population that is younger and has different musical tastes. This younger affluent group prefers to live in lhe city rather than cormnute from the suburbs. Older people concerned about crime in the downtown district do not like attending evening concerts Increased trafc congestion also discourages them from driving into the city's downtown cultural district. These are some of the main reasons why attendance has declined. To reach its traditional audience and to attract the younger audience, the Orchestra has decided to perform outdoor concerts in parks during the summer. It is in the process of selecting its mix of concerts for the upcoming summer. The summer season consists of 90 concerts given once per evening. When concerts are offered outside the Symphony Hall, the home base for the Orchestra. musicians are hired and paid on a per concert or nightly basis. The Orchestra contracts with private rms for services such as ticket sales, transportation of equipment, sound technicians. and security. These too are paid on a per concert or per night basis. The Orchestra has a full-time permanent staff of a musical program director, box ofce manager, administrative staff, and a director. These administrators are on salary. Other costs include ofce space rental, equipment, and utilities. The Orchestra is considering three types of concens for the next season: a. Classical selections from Beethoven and Brahms b. More Mozarta selection from Mozart's music c. Contemporary Pop and Rock Selections oeneaaaeieg sum ahatoct) ENG 2020-06-07 % C," i lms.brocku.ca ,0 Type here to search ' S or i eupcoming summer. E S'LIII'IIIIEI' season COnSlS ' 90 concerts given once per evening. When concens are offered outside the Symphony Hall. the home base for the Orchestra. musicians are hired and paid on a per concert or nightly basis. The Orchestra contracts with private rms for services such as ticket sales, transportation ol'equipment, sound technicians. and security. These too are paid on a per concert or per night basis. The Orchestra has a full-time permanent staff ofa musical program director, box ofce manager, administrative staff, and a director. These administrators are on salary. Other costs include office space rental, equipment, and utilities The Orchestra is considering three types of concens for the next season: 21. Classical selections from Beethoven and Brahms b. More Mozarta selection from Mozan's music c. Contemporary Pop and Rock Selections Table 1 contains the marketing department's projections ofsales and revenue for each type ofconcert. Since this is a new direction with no prior sales history, the director of the Orcheso'a. Salah Bemhardt. is concerned about the certainty of ticket sales. She has asked the box ofce manager to provide some sense ofhow sure he is that 141,000 tickets can be sold. She wanted to know the range of ticket sales so she could assess the risk the Orchestra faces. The box ofce manager has provided the following additional information. sum analog\") ENG 2020-06-07 %) G dent x (123 (123 X (124 X B Broc X B Con X B KS X G The X G K Sa X G KSa X C Hor X Sear X * Cou X + X C Ims.brocku.ca/access/content/attachment/0b71d355-7447-46a7-954f-5fcd6d8b5867/Announcements/42c04807-6565-49ba-8113-eb212adf0805/CT_Symphony.. G ! CT SYMPHONY CASE EXHIBITS Table 1 CT Symphony-Proposed Season Concert Type Average Ticket Price Number of Nights Tickets Sold Variable Cost/Night Beethoven & Brahms $35 30 30,000 25,000 Mozart 30 30 45,000 27,500 Contemporary Pop 20 30 66.000 30.000 Total 90 141,000 Total Fixed Costs $1,000,000 Table 2 CT Symphony-Range of Sales for Current Mix* Ticket Sales Probability of sales 100,000 15.00% 120,000 30.00% 140000 40.00% 160.000 15.00% 100.00% Table 3 CT Symphony-Alternate Proposal Concert Type Average Ticket Price Number of Nights Tickets Sold Variable Cost/Night Beethoven & Brahms $35 20 20,000 25,000 Mozart 30 30 45,000 27,500 Contemporary Pop 20 40 88,000 30,000 Total 90 153,000 Screenshot saved The screenshot was added to your OneDrive. Table 4 OneDrive CT Symphony-Range of Sales for Alternate Proposal* Type here to search O em W 20 ~ 0 7) ENG 3:14 PM 2020-06-07G dent x (123 (123 X (124 X B Broc X B Con X B KS X G The X G K Sa X G KSa X C Hor X Sear X * Cou X + X C Ims.brocku.ca/access/content/attachment/0b71d355-7447-46a7-954f-5fcd6d865867/Announcements/42c04807-6565-49ba-8113-eb212adf0805/CT_Symphony... G ! 140000 40.00% 160,000 15.00% 100.00% Table 3 CT Symphony-Alternate Proposal Concert Type Average Ticket Price Number of Nights Tickets Sold Variable Cost/Night Beethoven & Brahms $35 20 20,000 25,000 Mozart 30 30 45.000 27,500 Contemporary Pop 20 40 88,000 30.000 Total 90 153,000 Table 4 CT Symphony-Range of Sales for Alternate Proposal* Ticket Sales Probability of sales 130,000 10.00% 150,000 20.00% 170,000 35.00% 190,000 30.00% 210,000 5.00% *The probability distributions in Tables 2 and 4 represent a simplification. In a real situation, we would compute the probability distribution of sales for each type of concert; the sum of the expected sales for each concert would be the expected total ticket sales. Type here to search O W 2 01 7 1) ENG 3:15 PM 2020-06-07C H |ms.brocku.ca Required: Prepare a memo to Sarah Bernhardt the Director ofCT Symphony, outlining your analysis. conclusions, and recommendations to help the company plan its coming season. Your memo must include an analysis of the issues stated in questions a-c (below) to address the business and strategic decisions outlined in questions d and e. Required: a) For the coming summer season, onlyI use data in Table 1. Calculate the breakeven point for ticket sales and the expected prot using average revenue per ticket and average cost per ticket. What is the safety margin'i| Do the analysis at the overall (total) ticket-levels Now consider the data in Table 2; compute the breakeven point for ticket sales and the expected prot using average revenue per ticket and average cost per ticket. What is the safety margin? [Hint Calculate "Expected" Total Tickets Safes, given the probability distribution. Note, data in Tami-22 is at Total (Overall) ticket-levels] Assume that the box ofce manager would like to change the mix ofconcerts and has supplied you with the information shown in Tables 3 and 4. The cost information remains unchanged. Compute the breakeven point for ticket sales and expected profit using average revenue per ticket and average cost per ticket. What is the safety margin? Should the Orchestra adopt the alternate proposal? Explain your reasoning with facts and analysis. In your opinion. is the CT Symphony Orchestra pursuing the right strategyr in terms of the location and mix of concerts? Explain your reasoning with reference to the lite)r factors in the CT SymphonyI Orchestra's environment. I. ,0 Type here to search 0 at e :. o a a: e rs nil amemmrms