TLIP5008 Manage a Transport and Logistics Business Unit - Case Study 1

CASE STUDY #1 (Financial Performance Measurement)

(Covering PCs 5.3, to 5.6)

Xavier is the manager of a Western league Race club and has been asked to assist in the preparation of their sales budget for the year 2013. A total of 26 matches are played during the season and five scratch matches are played in the off-season. The club charges a $15 entry fee per person for seasonal games and a $10 entry fee for scratch matches. They also offer a membership package for

$200 which entitles holders to attend all games played over the year. Membership packages are only available for purchase at the start of the year. The number of tickets sold the previous year was as follows:

As the team won the Race league, the following assumptions have been made for the upcoming year:    Memberships will increase by 5%.

   Attendance at scratch matches will increase by 3% in the 1st quarter and 1.5% in the 4th quarter.    Season ticket sales will increase by 20% in the 2nd quarter and 15% in the 3rd quarter.

   The club has also decided to offer merchandise at each of the games at a cost of $5. Assuming all members attend every game, they expect 2% of all attendees to purchase merchandise at each of the games.

   Due to the nature of the business, all tickets and merchandise are paid for immediately. Of all season memberships, 90% are paid for in the 1st quarter with the remaining being collected in the next period.

Required:

1. Prepare a budget with a forecast of 5% increase to
2. Prepare a sales budget for the year ending 31 December 2011 with a 5% membership
3. Prepare a sales budget for the year ending 31 December 2011 with 3% increase to scratch matches and seasonal tickets. Also show the percentage increase and numbers to each
4. Show the Calculation of merchandise sales for each
5. Prepare a total sales budget for Western Race league club for the year ending 31st December 2011 (showing each quarter budget as well) for all the items, i.e. Membership, Scratches, Seasonal
6. Prepare a Cash Collection Schedule for Western Race league club for the year ending 31st December 2011 (showing each quarter budget as well) for all the items, i.e. Membership, Scratches, Seasonal