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 corporate member 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 nonmembers who do not attend will be refunded 50% of the price. Build a spreadsheet model that calculates a profit or loss based on the number of nonmember registrants. 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   registered nonmembers.
(c)	Consider three scenarios:
	Base Case Worst Case Best Case % of Members Who Do Not Show 25 % 50 % 20 % % of Nonmembers Who Do Not Show 10 % 30 % 4 % Number of Nonmember Registrants 137 105 185
	All other inputs are the same as in part (a). Use Scenario Manager to generate a summary report that gives the profit for each of these three scenarios. What is the highest profit? What is the lowest profit? If required, round your answers to two decimal places. For subtractive or negative numbers use a minus sign.
	The highest profit is $ .
	The lowest profit is $ .

Answer 1

a)

Revenue per person	$ 75.00
No of registration of non-members	127
Total Revenue A (75*127 )	$ 9,525.00
Variable Cost
Registration cost	$ 8.50
Continental Breakfast	$ 4.00
Lunch	$ 7.00
Parking	$ 5.00
Total variable cost per unit	$ 24.50
Total variable cost B ( 127*24.50 )	$ 3,111.50
No of non members who wont show up (127*10%)	12.7
Refund cost per user ( 75*50% )	$ 37.50
Total Refunds C ( 12.7* 37.50 )	$ 476.25
Fixed Cost
Variable expense of corporate members	$ 24.50
No of corporate members	50
Variable cost of Corporate members	$ 1,225.00
Rental Auditorium	$ 150.00
Speakers	$ 2,400.00
Total Fixed cost D	$ 3,775.00
No of corporate members that didnt turn up	12.5
No of non members that didnt turn up	12.7
Total no that didnt turned up for the event	25.2
Parking cost per unit	$ 5.00
Cost saving due to Non attendees E	$126.00
Net Profit (A-B-C-D+E)	$ 2288.25

b)

Units	Profits
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

Profit is Zero between 85-90

So Break even appears in the interval of 85-90 number of non registered members