WORLD UNIVERSITY OF BANGLADESH

Department of Business Administration

CASE STUDY
On
Food and Beverages at Southwestern University Football Games
[Course Code: MATH-4005]

Submitted To:
Issa Ahmmad
Assistant Professor
Department of Business Administration
World University of Bangladesh

Submitted By:
Name: Md. Saidul Islam
Program: MBA
Batch: 68 B, Roll: 2613
Email ID: 0420682613@student.wub.edu.bd
Department of Business Administration
World University of Bangladesh

Date of Submission: 11.12.2020

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CASE STUDY: Food and Beverages at Southwestern University Football Games

Answer: Here are the calculations for the five areas of concern that-

1. Total fixed cost that must be covered at each of the games:

Fixed costs per game include $20,000 food service salaries,

$4,800 to cover costs of 6 booths

$1,260 hourly wages for 36 booth employees

Total fixed costs per game: $20,000 + $4,800 + $1,260 = $26,060

2. The portion of the fixed cost allocated to each of the items:

Soft drink sales need to cover 25% of fixed costs, or $6,515

Coffee sales need to cover 25% of fixed costs, or $6,515

Hot dog sales need to cover 20% of fixed costs, or $5,212

Hamburger sales need to cover 20% of fixed costs, or $5,212

Miscellaneous snacks sales need to cover 10% of fixed costs, or $2,606

3. What unit sales would be at break-even for each item:

A soft drink costs $0.75 and is sold for $1.50, which is $0.75 of revenue. To reach the soft drink
break-even point, $6,515/$0.75 = 8,687 must be sold.

A cup of coffee brings in $1.50 in revenue. $6,515/$1.50 = 4,343 cups of need to be sold.

A hot dog brings in $1.20 in revenue. $5,212/$1.20 = 4,343 hot dog need to be sold.

A hamburger brings in $1.50 in revenue. $5,212/$1.50 = 3,475 hamburgers need to be sold.

A miscellaneous snack brings in $0.60 in revenue. $2,606/$0.60 = 4,343 snacks need to be sold.

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4. The dollar sales for each to be at these break-even points:

8,687 soft drinks at $1.50 each bring in $13,030.50

4,343 cups of coffee at $2.00 each bring in $8,686.00

4,343 hot dogs at $2.00 each bring in $8,686.00

3,475 hamburgers at $2.50 each bring in $8,687.50

4,343 snacks at $1.00 each bring in $4,343.00

Total break-even food service sales: $13,030.50 + $8,686.00 + $8,686.00 + $8,687.50 +

$4,343.00 = $43,433.00

5. Realistic sales estimates per attendee for attendance of 60,000 and 35,000.

Spending estimates per attendee for a crowd of 35,000 are $43,433/35,000 = $1.24 per attendee.

Spending estimates per attendee for a crowd of 60,000 are $43,433/60,000 = $0.72 per attendee.

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