Reserved and lawn seating areas are shown in Exhibit 1. The role of marketing and advertising is especially important for fixed-fee shows. SFX is one of the largest diversified promoters, producers, and venue operators for live entertainment events in the United States.
The Pavilion has two types of customers paying ticket holders and free ticket holders and earns profits from three types of revenues ticket revenues, concession revenues, and parking fees.
Assume, including the same 25 percent comp tickets i. The flash report projects total revenues including ticket sales, parking, food, and merchandise based on per capita drop count rates. These companies now maintain good working relationships within SFX.
Comp customers also bring in revenue for parking, concessions, and merchandise sales. What role does CVP analysis and operating leverage play in contract negotiations with different types of performers fixed-fee or per capita?
A seats and B seats are regular price tickets for the reserved and lawn seating sections respectively; C and D seats are promotional discount price tickets for reserved and lawn seating, respectively. Generally, the most popular artists seek a per capita contract because they are confident of a high level of attendance.
It is important to know the demographics of the five regions and compare them with the profile for each performer. The advertising rates in the Raleigh-Durham region are comparable to the rates in Washington, D.
The rates are up percent over the last five years, while the budgets per show are only up 15 percent over this time. The city of Raleigh would own the land while Pace Entertainment would own the facility and assume sole operations of the facility; Cellar Door would do the booking for all the concerts.
This type of analysis is important to the ALLTEL Pavilion because increased ticket sales, through effective advertising, not only affect ticket revenues, but also revenues from parking, merchandise, and concessions.
Exhibit 1 shows the stage and seating of the amphitheater. Preferably using an Excel spreadsheet although you may simply use paper instead if you so desirererun the following two CVP analyses but take into account the sensitivity changes i.
How Would You Describe The These are then added to the direct costs for concessions, merchandise, parking, and insurance to determine total operating expenses. Pace Entertainment and Cellar Door Inc.
What role does CVP analysis and operating leverage play in contract negotiations with different types of performers fixed-fee or per capita?The Alltel Pavilion Case: Strategy and CVP Analysis. n/a. Publication Information. ISSUES IN ACCOUNTING EDUCATION Vol.
19, No. 4 November pp. – The ALLTEL Pavilion Case: Strategy and CVP Analysis Edward Blocher and Kung H. Chen.
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 of North Carolina consisting of Raleigh, Durham, and Chapel Hill.
1. Issues in Accounting Education, November The ALLTEL Pavilion Case: Strategy and CVP Analysis EXHIBIT 1 ALLTEL Pavilion Stage and Seating The Pavilion can accommodate 20, fans with 7, reserved seats directly in front of the stage (covered seating in sections 1 through 9 and VIP seating) and another 13, on the spacious lawn.
Do you really want to delete this prezi? Neither you, nor the coeditors you shared it with will be able to recover it again. Delete Cancel. The ALLTEL Pavilion Case: Strategy and. The ALLTEL Pavilion Case: Strategy and CVP analysis BY Edward Blocher and Kung H. Chen Required: 1) How would you descr.Download