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    Case of IMS Party

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    LovangeenKhan
    The organizers of a welcome party collected revenue of Rs. 500 from faculty members, Rs. 96,000 from ticket sales of 320 tickets at Rs. 300 each and Rs. 6,000 from 30 last-minute tickets sold at Rs. 200 each. Expenses included Rs. 30,000 for fixed costs like catering, decor and transportation and Rs. 25,600 for food at Rs. 80 per head. The break-even point was calculated to be 240 tickets and Rs. 72,000. With a net income of Rs. 46,400, the claim of losses was not valid. A letter was written to the director to investigate the matter since one organizer collected Rs. 1,500 that may have been mis

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    Case of IMS Party

    Uploaded by

    LovangeenKhan
    10 views1 page
    The organizers of a welcome party collected revenue of Rs. 500 from faculty members, Rs. 96,000 from ticket sales of 320 tickets at Rs. 300 each and Rs. 6,000 from 30 last-minute tickets sold at Rs. 200 each. Expenses included Rs. 30,000 for fixed costs like catering, decor and transportation and Rs. 25,600 for food at Rs. 80 per head. The break-even point was calculated to be 240 tickets and Rs. 72,000. With a net income of Rs. 46,400, the claim of losses was not valid. A letter was written to the director to investigate the matter since one organizer collected Rs. 1,500 that may have been mis

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    case study of break even analysis of welcome party

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    The organizers of a welcome party collected revenue of Rs. 500 from faculty members, Rs. 96,000 from ticket sales of 320 tickets at Rs. 300 each and Rs. 6,000 from 30 last-minute tickets sold at Rs. 200 each. Expenses included Rs. 30,000 for fixed costs like catering, decor and transportation and Rs. 25,600 for food at Rs. 80 per head. The break-even point was calculated to be 240 tickets and Rs. 72,000. With a net income of Rs. 46,400, the claim of losses was not valid. A letter was written to the director to investigate the matter since one organizer collected Rs. 1,500 that may have been mis

    Copyright:

    © All Rights Reserved
    Download as DOC, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    10 views1 page

    Case of IMS Party

    Uploaded by

    LovangeenKhan
    The organizers of a welcome party collected revenue of Rs. 500 from faculty members, Rs. 96,000 from ticket sales of 320 tickets at Rs. 300 each and Rs. 6,000 from 30 last-minute tickets sold at Rs. 200 each. Expenses included Rs. 30,000 for fixed costs like catering, decor and transportation and Rs. 25,600 for food at Rs. 80 per head. The break-even point was calculated to be 240 tickets and Rs. 72,000. With a net income of Rs. 46,400, the claim of losses was not valid. A letter was written to the director to investigate the matter since one organizer collected Rs. 1,500 that may have been mis

    Copyright:

    © All Rights Reserved
    Download as DOC, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 1

    Managerial Accounting, Institute of Management Sciences,

    KUST, Kohat
    Case Study (IMS Welcome Party)
    Shehryaar, Shoukat Ayaz, Miss Asma, Kashif Banori, and their colleague organized
    welcome party and farewell. They were worried about the financing for the party. They
    followed the following steps for expenses and revenues and still they have claimed that
    we are facing loses.
    Revenue:
    The organizing team collects Rs.500 from 15 faculty members and sales 320 tickets @
    Rs.300 each. Just before starting the party 30 tickets were sold @ Rs.200 each on strong
    protest of students.
    During skit Mr. Sahil collected Rs.1500 and I am not sure that it would be for party
    contribution or for his personal use.
    Expenses:
    Fixed Expenses:
    Catering, Stage and Chairs and Transportation
    DJ system
    Total Fixed Cost

    Rs.25,000
    Rs.5000
    Rs.30,000

    Variable Expenses:
    Food Expenses.Rs.80 per Head. But the ticket sold on the day just
    before the party was out of food.
    Required:
    1. Calculate Break Even Point in Ticket
    2. Calculate break Even point in Rupees
    3. Net Income
    4. Do you think those organizers are right to claim that they are facing losses in this
    event management? If not, write a letter to Director IMS to probe into the matter
    and resolve the issue.

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