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 twelve 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....

Answer 1

a) Currently there are 10 members to each of which 12 seats to the symposium are given, so the total member seats are 120. Total non member seat allotments are 127. The seat allotments for members are free and for non members is $ 75. Let us first calculate the profit/loss for full occupancy of members and non members-

Particulars	Per person ($)	Total Amount ($)
Revenue-Members	0	0
Revenue-Non members	75 * 127	9525
Rental for Auditorium	0	(150)
Registration Processing	8.50 * (120+127)	(2099.50)
Speaker Cost		(2,400)
Continental Breakfast	4* (247)	(988)
Lunch	7* (247)	(1729)
Parking	5* (247)	(1235)
Net Profit		923.50

Currently there are 10 members to each of which 12 seats to the symposium are given, so the total member seats are 120. Number of non attendees are 25% of registrants which is 30. Total non member seat allotments are 127. Number of non attendees are 10% of registrants which is 13. The seat allotments for members are free and for non members is $ 75. The refund for non attendees for non members is 50% which is $37.50, Let us calculate the profit/loss for this occupancy of members and non members-

Particulars	Per person ($)	Total Amount ($)
Revenue-Members	0	0
Revenue-Non members	75 * 127	9525
Rental for Auditorium	0	(150)
Registration Processing	8.50 * (120+127)	(2099.50)
Speaker Cost		(2,400)
Continental Breakfast	4* (247)	(988)
Lunch	7* (247)	(1729)
Parking	5* (204)	(1020)
Refund to non member non attendees	37.5*13	(487.50)
Net Profit		651