19‚ No. 4 November 2004 pp. 555–561 The ALLTEL Pavilion Case: Strategy and CVP Analysis Edward Blocher and Kung H. Chen ABSTRACT: The ALLTEL Pavilion case is intended for the undergraduate management accounting or cost accounting course and the M.B.A. management accounting course. It provides an excellent context in which to examine strategic issues in using cost volume profit (CVP) in a service business. Based on an actual entertainment pavilion‚ the case develops many factors unique to a
Premium Cost accounting Revenue Operating expense
Case 9-4 Cost-Volume-Profit Analysis and Strategy: The ALLTEL Pavilion Andrea Mullens 1) The competitive strategy of the ALLTEL Pavilion is largely focused on differentiation. With no substantial competitors in the geographic region‚ they are looking to create an “experience” for the audience and thus maintain the sustainability of the venue. They do this primarily through solid Marketing efforts. They are focused on the making the venue and each event as profitable as possible‚ by making
Premium Costs Fixed cost Management accounting
Appendix 2. a) Parking‚ Concession‚ Merchandise cost includes both fixed and variable costs. Variable Costs = | 10% * Revenue | | | Fixed Costs = | Total expense - | Variable Cost | | | | | | Costs | Variable | Fixed | Total Cost | Parking expense | 19‚767 * 10% = | 4‚448 - 1‚976.70 = | | | $ 1‚976.70 | $ 2‚471.30 | $ 4‚448.00 | Concession expense | 79‚273* 10% = | 43‚356 - 7‚927.30 = | | | $
Premium Variable cost Costs Fixed cost
1. How would you describe the competitive strategy of the ALLTEL Pavilion? Given the firm’s strategy‚ what are the most important Key Performance Indicators (e.g.‚ quantitative measures) for the Pavilion to track and manage if it is to achieve its goal of continuous annual growth in operating income? ALLTEL Pavilion is operated by SFX Entertainment in an outdoor atmosphere for its customers. ALLTEL attempts to create a competitive advantage as the major outdoor concert venue in the "Triangle" area
Premium The Pavilion Average Per capita income
Management Chapter 3 Cost-Volume-Profit Analysis Prepared by Gail Kaciuba Midwestern State University © John Wiley & Sons‚ 2005 Chapter 3: Cost-Volume-Profit Analysis Eldenburg & Wolcott’s Cost Management‚ 1e Slide # 1 Chapter 3: Cost-Volume-Profit Analysis Learning objectives • • • • • • Q1: What is cost-volume-profit (CVP) analysis‚ and how is it used for decision making? Q2: How are CVP calculations performed for a single product? Q3: How are CVP calculations performed for multiple products
Premium Costs Contribution margin Variable cost
A cost-volume-profit analysis is a vital factor to a company. It is very important to profit planning. Cost-volume-profit (CVP) analysis is the study of the effects of changes in cost and volume on a company’s profits. It is also a factor in management decisions such as setting selling prices‚ determining product mix‚ and maximizing use of production facilities. There are five components that make up a CVP analysis. They are volume or level of activity‚ unit selling prices‚ variable cost per unit
Premium Contribution margin Costs Management accounting
CHAPTER 1: COST VOLUME PROFIT ANALYSIS LEARNING OBJECTIVES: At the end of this chapter‚ you should be able to: * Describe the differences between the accountant’s and the economist’s model of cost volume profit analysis. * Apply the cost volume profit approaches in the calculation of breakeven point‚ margin of safety‚ target selling price and sales volume. * Construct breakeven‚ contribution and profit volume graph. * Apply cost volume profit analysis in a multi product setting *
Premium Variable cost Costs Fixed cost
The relationship between cost volume and profit is shown by cost-volume-profit analysis. it is an analytical tool for analyzing the relationship among cost‚ price‚ profit‚ sales and production volume. Mainly there are three element in cost-volume-profit analysis. It is highly essential for the management to have the complete knowledge about the inter relationship among the cost‚ volume and profit. for this purpose cost-volume-profit analysis can be regarded as a sophisticated method or analytical tool used
Premium Costs Variable cost Management accounting
QUESTION a). Name five assumptions that underline the use of break – even analysis. It is essential that anyone preparing or interpreting CVP information is aware of the underlying assumptions on which the information has been prepared. If these assumptions are not recognized‚ serious errors may result and incorrect conclusions may be drawn from the analysis.(Drury‚ 2004). Breakeven analysis (cost-volume-profit analysis) is an approach to profit planning that requires derivation of various relationships
Premium Variable cost Costs Management accounting
Mexican Pavilion Carlos Amorales is an artist who explores the limits of language as well as other translation systems. Amorales’ work in the Mexican Pavilion combines a coded language‚ musical instruments‚ and a video to convey his message. Viewers must continually be translating meaning from one language to another‚ from one format to another‚ as they experience the values of universal acceptance and open communication Amorales shows. Physical work The installation itself in the Mexican Pavilion
Premium Language Typography Typeface