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  • 4-2: Rothmueller Museum: Anup Robins Arpita Bhattacharya Chandraprasad Hejib Manpal Singh Julka Sudhanya Chakraborty

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    Manpal Singh Julka ੴ
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    The document summarizes the financial impact of conducting an exhibition at the Rothmueller Museum over a 3 month period. When no exhibition is conducted, the museum would incur a loss of $8,480 due to fixed costs. When an exhibition is conducted, the museum would earn a profit of $33,780 from increased visitor revenue and store sales. The break-even point for visitor numbers is calculated to be 7,061 people in order for total revenue to cover total variable and fixed costs.

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    Rothmueller Museum

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    The document summarizes the financial impact of conducting an exhibition at the Rothmueller Museum over a 3 month period. When no exhibition is conducted, the museum would incur a loss of $8,480 due to fixed costs. When an exhibition is conducted, the museum would earn a profit of $33,780 from increased visitor revenue and store sales. The break-even point for visitor numbers is calculated to be 7,061 people in order for total revenue to cover total variable and fixed costs.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
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    92 views4 pages

    4-2: Rothmueller Museum: Anup Robins Arpita Bhattacharya Chandraprasad Hejib Manpal Singh Julka Sudhanya Chakraborty

    Uploaded by

    Manpal Singh Julka ੴ
    The document summarizes the financial impact of conducting an exhibition at the Rothmueller Museum over a 3 month period. When no exhibition is conducted, the museum would incur a loss of $8,480 due to fixed costs. When an exhibition is conducted, the museum would earn a profit of $33,780 from increased visitor revenue and store sales. The break-even point for visitor numbers is calculated to be 7,061 people in order for total revenue to cover total variable and fixed costs.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as ppt, pdf, or txt
    of 4

    4-2 : Rothmueller Museum

    Group G1
    Anup Robins
    Arpita Bhattacharya
    Chandraprasad Hejib
    Manpal Singh Julka
    Sudhanya Chakraborty
    C1: When no exhibition is not conducted
    (For 3 Months)
    • Total Fixed cost = Alice Morgan’s salary + William Jacob’s salary = $ 20,000
    • Visitors = 9000/5 = 1800
    • Revenue = 1800 x $ 5 = $ 9000
    • Revenue from Store = 0.2 x 1800 x 7 = $2520
    • Variable cost = 0

    • Profit = R- TVC - TFC = (11520) – 0 – 20000 = - $ 8480

    • Loss of $ 8480 is incurred if exhibition is not conducted


    C2: When exhibition is conducted
    (For 3 Months)
    • Total Fixed cost = $ 123000
    • Visitors = 9000
    • Revenue = (5+12) x 9000 = $ 153000
    • Revenue from Store = 0.2 x 9000 x 7 = $12600
    • Variable cost = 0.98 x 9000 = 8820 ( (S-Cogs)/S = .3)
    – VC comes from cost of sales which comes from gross margin = (sales – COS)/sales

    • Profit = R- TVC - TFC = 165600 – 8820 – 123000 = $33780

    • Profit of $33780 is obtained if exhibition is conducted


    For calculation of Break Even

    • TFC = $123000
    • Revenue = (5+12)n + (7 x 0.2n)
    • VC = 0.98n (from gross margin equation)
    • Profit = 0

    • Revenue = TVC + TFC


    => 17n + 1.4n = 123000 + 0.98n

    Solving :
    • No of visitors to break even = 7061

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