Write a Report recommending a price scheme for the convention. Begin your report with the recommendation and then support your recommendation with your analysis. If extensive, computations should be placed in the appendix to your report.
Systems Planning Institute (SPI) is a professional educational organization for systems analysts and programmers. The organization has approximately 50,000 members. SPI holds an annual convention each October, and planning for the 2016 convention is progressing smoothly. The convention budget for such items as promotional brochures, fees and expenses for 20 speakers, equipment rental for presentations, the travel and expenses of 25 staff people, consultant fees, and volunteer expenses and so on, is $330,000. This amount does not include any of the hotel charges for meeting rooms, luncheons, banquets or receptions SPI has always priced each function at the convention separately (i.e. members select and pay for only those functions they wish to attend). For each registered function, a member receives a ticket that is surrendered at the function. If a member attends the convention, they must pay a registration fee that allows them to attend the annual reception and the annual meeting at no additional charge. The Annual Convention Committee of SPl is considering setting a single flat fee for the entire convention. The fee would entitle a registered member to attend all functions at the convention. Entrance to each convention function would be permitted if the member displayed the official convention badge that would be issued only to persons paying the fee. Listed below is data on convention functions, including the price that SPI would charge if pricerd separately: Hotel Charges to SPI (Not induded in the Percentage Participation 100% 100% 100% 90% Function Price 50.00 None Registration Fee Free Free $2,000 per room Annual Meetin Keynote Luncheon Concurrent Sessions (6) Other Session Workshops (6) 40.00 $25/attendee 70% 60.00 $1,200 for all 6 rooms 100.00 $1,200 for all 6 rooms 50.00 $30/attendee 90% The hotel package of services to SPI and the convention attendees is as follows Three free rooms for convention headquarters and storage Discount of 20% on posted room rates for all convention attendees who stay in the hotel during the three day convention. The types of rooms, posted rates and proportion of reservations of each type of room are as follows: Systems Planning Institute (SPI) is a professional educational organization for systems analysts and programmers. The organization has approximately 50,000 members. SPI holds an annual convention each October, and planning for the 2016 convention is progressing smoothly. The convention budget for such items as promotional brochures, fees and expenses for 20 speakers, equipment rental for presentations, the travel and expenses of 25 staff people, consultant fees, and volunteer expenses and so on, is $330,000. This amount does not include any of the hotel charges for meeting rooms, luncheons, banquets or receptions SPI has always priced each function at the convention separately (i.e. members select and pay for only those functions they wish to attend). For each registered function, a member receives a ticket that is surrendered at the function. If a member attends the convention, they must pay a registration fee that allows them to attend the annual reception and the annual meeting at no additional charge. The Annual Convention Committee of SPl is considering setting a single flat fee for the entire convention. The fee would entitle a registered member to attend all functions at the convention. Entrance to each convention function would be permitted if the member displayed the official convention badge that would be issued only to persons paying the fee. Listed below is data on convention functions, including the price that SPI would charge if pricerd separately: Hotel Charges to SPI (Not induded in the Percentage Participation 100% 100% 100% 90% Function Price 50.00 None Registration Fee Free Free $2,000 per room Annual Meetin Keynote Luncheon Concurrent Sessions (6) Other Session Workshops (6) 40.00 $25/attendee 70% 60.00 $1,200 for all 6 rooms 100.00 $1,200 for all 6 rooms 50.00 $30/attendee 90% The hotel package of services to SPI and the convention attendees is as follows Three free rooms for convention headquarters and storage Discount of 20% on posted room rates for all convention attendees who stay in the hotel during the three day convention. The types of rooms, posted rates and proportion of reservations of each type of room are as follows
