P1 - Profit model
The University of Cincinnati Center for Business Analytics is an outreach center that collaborates with industry partners on applied research and continuing education in business analytics. One of the programs offered by the Center is a quarterly Business Intelligence Symposium. Each symposium features three speakers on the real-world use of analytics. Each corporate member of the center (there are currently ten) receives five free seats to each symposium. Nonmembers wishing to attend must pay $75 per person. Each attendee receives breakfast, lunch, and free parking. The following are the costs incurred for putting on this event:
Rental cost for the auditorium
$8.50 per person
3*$800 = $2400
$4.00 per person
$7.00 per person
$5.00 per person
1. Build a spreadsheet model that calculates a profit or loss based on the number of nonmember registrants.
2. Use Goal Seek to find the number of nonmember registrants that will make the event break even
The Center for Business Analytics is considering a refund policy for no-shows.
No refund would be given for members who do not attend, but nonmembers who do not attend will be refunded 50 percent of the price. The Center pays the caterer for breakfast and lunch based on the number of registrants (not the number of attendees). However, the Center pays for parking only for those who attend. Based on past data, it is known that 25 percent of members who registered and 10 percent of registered nonmembers do not attend.
1. Extend the model you developed to account for the new facts (past data and refund policy).
2. What is the profit if each corporate member registers their full allotment of tickets and 127 nonmembers register?
3. Use a two-way data table to show how profit changes as a function of number of registered nonmembers and the no-show percentage of nonmembers.
Vary the number of nonmember