Question

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 of the corporate members of the center (there are currently 10) receives seven 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: $150 Registration Processing: $8.50 per person Speaker Costs: 3@$800 $2,400 Continental Breakfast: $4.00 per person Lunch: $7.00 per person Parking: $5.00 per person (a) 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 for nonmembers who do not attend, 50% of the price will be refunded. Build a spreadsheet model in Excel that calculates a profit or loss based on the number of nonmember registrants. Extend the model you developed for the Business Intelligence Symposium to account for the fact that historically, 25% of members who registered do not show and 10% of registered nonmembers do not attend. The center pays the caterer for breakfast and lunch based on the number of registrants (not the number of attendees). However, the center only pays for parking for those who attend. What is the profit if each corporate member registers their full allotment of tickets and 127 nonmembers register? If required, round your answers to two decimal places. $ (b) 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 number of nonmember registrants from 80 to 160 in increments of 5 and the percentage of nonmember no-shows from 10% to 30% in increments of 2%. In which interval of nonmember registrants does breakeven occur if the percentage of nonmember no-shows is 22%? Breakeven appears in the interval of  to  number of registered nonmembers.

Answer 1

a.

Number of member registration (10*5)	50
Number of non-member registration	127
Total number of registration	177
Number of non attendee member (50*25%)	13
Number of non attendee non member	13
Number of attendee member (50 - 13)	37
Number of non attendee member (127-13)	114

Particulars	Amount	Amount
Toal amount obtained by registration (75*127)		9525
Less:
Variable cost:
Registration processing (8.5 * 177)	1504.5
Continental breakfast (4 * 177)	708
Lunch (7 * 177)	1239
Parking (5* (37+114)	755
Fixed costs:
Rental cost for auditorium	150
Speaker cost (3 speaker@800)	2400
Total cost incurred		6756.5
Profit before refund		2768.5
Less: Refund amount for Non- attendee Non-members (13*75)*50%		487.5
Net Profit		2281

b.

Units	Profit
80	-244.5
85	-27.75
90	189
95	405.75
100	622.5
105	839.25
110	1056
115	1272.75
120	1489.5
125	1706.25
130	1923
135	2139.75
140	2356.5
145	2573.25
150	2790
155	3006.75
160	3223.5

Since, profit is zero between 85-90 so breakeven will be in the range 85-90.