PRICING AND CVP PROPOSAL

ACC720

INDIVIDUAL ASSIGNMENT

TITLE:
U15 RECURVE GIRL’S ARCHERY TOURNAMENT

NAME: ALEALIANA BINTI AZMI

MATRIX NO: 2022265606

PREPARED FOR: PROF. MADYA DR RAHAYU BINTI ABD RAHMAN

23rd JANUARY 2023

 TABLE OF CONTENT
1.0 INTRODUCTION OF THE PROGRAM
2.0 PROGRAM’S COST (VC AND FC)
3.0 PROGRAM’S SELLING PRICE
4.0 PROGRAM’S CVP ANALYSIS AND SITUATIONAL ANALYSIS
5.0 CONCLUSION
1.0 INTRODUCTION

U15 RECURVE GIRL’S ARCHERY TOURNAMENT

DATE : TBC
VENUE : ROYAL SELANGOR CLUB
NUMBER OF PLAYERS : BASED ON 40 PLAYERS

PRE-ARCHERY INCLUSIONS

Bag Drop & Registration

Registration Area

Royal Selangor Club Staff Member to do Group Registration (if required)

Coffee and tea cart for all players

Sausage and egg breakfast rolls for all players

Personalised Cart Signage & On Course Activity Sheet

Personalised Score Cards (if required)

Players Brief

On Course Inclusions

-Players led out to course by Royal Selangor Club

-Option to have 1 x On Course Beverage Cart (stocked with a variety of Food &
Beverages for purchase) A surcharge will apply for On Course Beverage Cart Service
– Additional RM250

Post Course Inclusions

-Archers BBQ lunch for all players

-Locker & Shower Facilities

-Presentation Area
Sample Event Schedule

Registration 0730 hrs

Players Briefing 0830 hrs
Shotgun start 0900 hrs
Approx finish of 30 targets 1430 hrs
Presentation 1545 hrs

2.0 PRODUCT’S COST (VC AND FC)

Package includes

• Booking of archery course

• Arrangement of catering options
• Sourcing of prizes and gifts
• Breakfast on arrival
• Lunch Buffet
• Preparation of all equipment, score board, rules sheets, etc prior to the event
• Erection of advertising signage for arriving guest
• Collation of the day results for the presentations
• On-Site starter
• Services of a Professional Archer can be included to run briefing

COST

(?) per person based on 40 players.

ROYAL SELANGOR CLUB

Royal Selangor Club is one of Asia’s oldest sporting institutions founded in 1884.
Located at the Kuala Lumpur town which is as a centre where members and their
families gathered to socialized at functions, dinners and events. The club has since its
inception been the centre of entertainment and a place to exchange discuss matters
of the day. RSC continues to be the premier Club in providing members with sporting
and social facilities that encourage interaction and socializing in a friendly, harmonious
and relaxing atmosphere.
DEPOSIT

To secure a date a 30% deposit is required to confirm the booking. The balance is to
paid 60 days prior to archery day. If event is cancelled 60 days or more before the
date of event 10% of the deposit will be retained. If event is cancelled between 59-31
days before the date of event the 30% deposit will be retained. Within 30 days no
refunds will be allowed.

REDUCING PLAYER NUMBERS POLICY

If the numbers are reduced below that stated above then a RM55 fee per person
cancelled will be charged. If numbers reduce by more than 20% then pricing for
those playing will need to be recalculated.

Optional Extras

Key Personnel

Alealiana binti Azmi – Director of Dahlia Archery Range (DAR)

Alealiana who was involved in archery fields over (18) years. She spent 8 years as
Archery Sport coach at Kementerian Belia dan Sukan.

Since 2000, Alealiana has been responsible for overseeing over 120 archery corporate
events for clients such as Astro SuperSport, Fox Sports (Asian TV Network), Olympic
Channel and World Archery TV.
INCOME

Tournament fees – How many archers should attend to the event in order to cover its
costs?

How much can an archery tournament raise?

SPONSORS

DAR were looking for different set of sponsors. First is the local business who may not
have an affiliation with DAR but may be interested in archery tournament sponsorship.

In the projected budget, DAR planned for the prizes sponsors or fundraising. The total
up for sponsorship is RM4,600.00 for prizes only. This numbers could rise if DAR can
get additional sponsorship and set up for U15 tournament for boys also.

FACILITIES

The fees for the participants (?) per person. That price pays for the use of the practice
facilities and the meal. Included any labor, tables, chairs and usage of their tent. DAR
projected that 40 archers will participate. However, DAR would only need to pay
RM1500.00 to reserve the spot.

INSURANCE

This tournament is targets participants from all states in Malaysia. For sure the
insurance is a must. There is (2) types of insurance which is:

a) Travel insurance - RM150.00 will be allocated for travel insurance.

b) Sports accident insurance – DAR projected a total of RM2000.00 needed to
purchase at fields insurance.

GIFT AND PRIZES

Gift bags - Gift bags for each archer that they would receive upon check-in. This bag
would include snacks and a few inexpensive, archery related items like leather finger
gloves, water bottle, stringer and tees. Additionally, any donations from the cart
sponsors can also be added. DAR projected a total of RM2,000.00 needed to create
the gift bags for each archer.
Prizes - Many tournaments offer prizes like gift and certificates for the winning team
and this is a possibility, though it will cost a bit more. Our thought was to purchase
trophies for the top three winners as well as for the last place, etc. Trophies are usually
cheaper than gift certificates and are more personal. We have projected a total of
RM2,100.00 needed to purchase the prizes.

SIGNAGE

It will be up to DAR to purchase signage for the sponsors, for check-in etc. DAR have
based the cost of the signage on the thirteen projected sponsors, along with a
registration sign. Each sign cost roughly RM100.00 giving us a projected total of
RM1,300.00

PUBLICITY

Projected a total of RM2000.00 for printing and photocopy costs. This would include
letters to sponsors, registration confirmation and possibly a sign-up website.

EVENT PLANNING

The fee for planning this tournament and coordinating all above items needed will be
10% of the total profit.

COLLECTION AND OUTLAY

There are a lot of costs that are associated with an archery tournament, the initial
outlay of funds is not that large. The only up fronts costs would be for reservation of
the archery course and for the insurance, a sum of RM4,000.00. Everything else can
be paid for from the money collected by the archers signing up early as well as from
the sponsors.
CONCLUSION

There are several ways of DAR can raise additional money for the club. An archery
tournament is just one, DAR believe that a tournament gives the opportunity to reach
out to different populations of potential supporters. The tournament also will allow DAR
to obtain the monetary resources that will help the club.

ESTIMATE OF EXPENDITURE

NO PARTICULARS PER UNIT TOTAL TYPE OF

PRICE (RM) (RM) COST
1. Shirt 30 30 VC
2. Archer towel 60 60 VC
3. Logo Bow 3 3 VC
4. Logo Cap 50 50 VC
5. Gift Bow bag 45 45 VC
6. Prizes (trophy) 70 70 VC
7. Food & Beverage 100 100 VC
8. Sponsor gifts 250 250 VC
9. Signage 135 135 VC
10. Prize
-Single WA Advance Bow 2000 X 1
Recurve 4600 VC
-Single WA Basic Bow 2000 X 1
-Group Major Championship 2600 X 1

11. Fields Helper 100 X 2 200 FC

12. Insurance 200 200 FC
13. Token for staff committee 100 FC
14. Club Maintenance 5000 5000 FC
15. Club locker Room 80 80 FC
16. Archery Target Board 250 250 FC
17. Archery Pure Carbon Arrows 150 150 FC
COST VOLUME ANALYSIS

1.Expected participants :40

2.Registration fee :RM600.00

3.Staff committee :35 pax

3.0 PROGRAM SELLING PRICE

Selling Price per Archer RM600.00

PARTICULARS COST (RM)

Registration fees RM600 / participants
Less: Variable Cost
Shirt 30
Archer towel 60
Logo Bow 3
Logo Cap 50
Gift Bow bag 45
Prizes (trophy) 70
Food & Beverage 100
RM358
Contribution Margin RM242 / participants
Token for staff (RM200 X 35) 7000

4.0 PROGRAM’S CVP ANALYSIS AND SITUATIONAL ANALYSIS

1.Breakeven Point

Total sales – Total Variables Cost – Fixed Cost = Net Profit

RM600.00x – RM358.00x – RM7000.00 = 0

RM242.00x = RM7000.00

X=29

X=29 participants should be participated to cover the cost.

2.How many participants should attend to the event in order to earn RM10,000.00 as
net profit?

Total sales – Total variables Cost – Fixed Cost = Net Profit

RM600.00x – RM358.00x – RM7000.00 = RM10,000.00

RM242.00x = RM17,000.00

X=70.

To get RM10,000.00 net profit, 70 Archers need to participated in the tournament.

3.Margin of safety

Actual expenses sales – breakeven sales

40 archers – 29 archers

=11 Archer is the minimum total sales that can be dropped in future. If more than
that, the tournament will set to incur losses.
PROGRAM’S SITUATIONAL ANALYSIS

PROPOSAL A

In order to boost sales, Director suggested a more aggressive promotional campaign

to be carried out. This campaign would cost RM2,500.00 for the influencer.

PARTICULARS COST (RM) PROPOSAL A (RM)

Registration fees 600.00 / Participant 600.00 / Participant
Less: Variable Cost
Shirt 30 30
Archer towel 60 60
Logo Bow 3 3
Logo Cap 50 50
Gift Bow bag 45 45
Prizes (trophy) 70 70
Food & Beverage 100 100
TOTAL VC PER UNIT 358 358
Less: Fixed Cost
Token for staff (RM200 X 35) 7000 7000
Influencer 2500
TOTAL VC PER UNIT 7000 9500
SALES 40 40
NET PROFIT 2,680 0

1.Proposal A Breakeven Point

Total Sales - Total Variable Cost – Fixed Cost = Net Profit
RM600x – RM358x – RM9500 = 0
242x = RM9500
X=39 participants should be participated to cover the cost.

2.How many participants should attend the tournament in order to earned RM 15,000
as net profit?
Total Sales - Total Variable Cost – Fixed Cost = Net Profit
RM600x – RM358x – RM9500 = RM15000
242x = RM24500
X=102 participants should join this tournament to get RM15000 as net profit.

3.Proposal A Margin of safety

Actual expenses sales – breakeven sales
(RM600 x 40) – (RM600 x 39)
=RM24000 – RM23400
= RM600
PROPOSAL B
Dahlia Archery Range is in the process to reduce the cost by reducing 10% of shirt
cost and 20% of Food & Beverage.

PARTICULARS COST (RM) PROPOSAL A PROPOSAL B

(RM) (RM)
Registration fees 600.00 / 600.00 / 600.00 /
Participant Participant Participant
Less: Variable Cost
Shirt 30 30 RM30 – 10% =
RM27
Archer towel 60 60 60
Logo Bow 3 3 3
Logo Cap 50 50 50
Gift Bow bag 45 45 45
Prizes (trophy) 70 70 70
Food & Beverage 100 100 RM100 – 20% =
RM80
TOTAL VC PER UNIT 358 358 335
Less: Fixed Cost
Token for staff (RM200 7000 7000 7000
X 35)
Influencer 2500 2500
TOTAL VC PER UNIT 7000 9500 9500
SALES 40 40 40
NET PROFIT 2,680 0

1.Proposal B Breakeven Point

Total Sales - Total Variable Cost – Fixed Cost = Net Profit
RM600x – RM335x – RM9500 = 0
265x = RM9500
X=36 participants should be participated to cover the cost.
2.How many participants should attend the tournament in order to earned RM 15,000
as net profit?
Total Sales - Total Variable Cost – Fixed Cost = Net Profit
RM600x – RM335x – RM9500 = RM15000
265x = RM24500
X=93 participants should join this tournament to get RM15000 as net profit.

3.Proposal B Margin of safety

Actual expenses sales – breakeven sales
(RM600 x 40) – (RM600 x 36)
=RM24000 – RM21600
= RM2400

CONCLUSION
There is (3) situation as we can see. First, if DAR stated an archer fees is RM600.00,
so at the end DAR must get (29) archers as participants to cover the costs. To get
RM10,000.00 net profit, 70 Archers need to participated in the tournament and 11
archers is the minimum total sales that can be dropped in future. If more than that,
the tournament will set to incur losses.

Second is, if DAR added RM2500.00 for the influencers to boost the sales, the Fix
Cost will increase to RM9500.00 and 39 participants needed to participated in case
to cover the costs. If DAR stated RM15000.00 as net profit, DAR must have 102
participants to join this tournament.

Third is if DAR makes a decision to reduce 10% of shirt price and 20% of food &
beverage allocated, the Variables Cost per unit will change to RM335.00 and 36
participants should be participated to cover the cost. If DAR stated RM15000.00 as
net profit, DAR must have 93 participants to join this tournament.