The Annie Smith Dance Center

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    Case Assignment
    The Annie Smith Dance Center
    The Director of Annie Smith Dance Center is asking for assistance with the financial aspects of running a professional group of performers. She wants financial information presented in an easy to read format and a better understand of the profitability of the concerts and the organization as a whole.
    The Annie Smith professional group features four dance concerts each year. Three of the dance concerts showcase a different genre. The fourth performance is a Christmas Spectacular which is the most popular dance concert and is therefore scheduled every year. Ms. Smith has tentatively scheduled the following four dance concerts for the coming season. The schedule below shows the type and number of performances and direct cost per type of concert. Examples of direct fixed costs are costumes rehearsals royalties guest artist fees choreography and salaries of production staff music and wardrobe for each of the four concerts.
    DescriptionsNumber of PerformancesCost per Dance Concert (direct fixed costs)Hip Hop Concert10$45000Jazz and Tap Dance588000Modern Dance1095000Christmas Spectacular2025000
    $253000
    Additional costs:
    Variable costs associated with each performance are shown below.
    Musicians$7500Rental of auditorium2500Dancers’ compensation7000
    General administrative and operating costs for the dance center are:
    Administrative staff$185000Insurance25000Marketing215000General office expenses90000
    Lower Orchestra Section (A)Upper Orchestra Section (B)DescriptionsNo. of SeatsTicket PriceTickets Sold per PerformanceNo. of SeatsTicket PriceTickets Sold per PerformanceHip Hop Performance150$85100%450$5090%Jazz and Tap Dance150$85100%450$5060%Modern Dance150$85100%450$5095%Christmas Spectacular150$125100%450$50100%
    Required:
    Computations (use Excel)
    TitleName of Dance ConcertRevenues/PerformanceVariable Costs/PerformanceContribution Margin/PerformanceTotal Contribution/Type of Dance ConcertDirect Fixed CostsSegment Margin/Type of Concert1.
    2.
    3.
    4.
    Total
    Memo (use Word)
    Write a four or five paragraph memo to the owner of the dance center to assist her in interpreting the financial analysis. Start with an introduction and end with a recommendation. Each of the four or five paragraphs should have a heading.
    Short Essay (use Word)
    Start with an introduction and end with a summary or conclusion. Use headings.
    Assignment Expectations
    Each submission should include two files: (1) An Excel file; and (2) A Word document. The Word document shows the memo first and short essay last. Assume a knowledgeable business audience and use required format and length. Individuals in business are busy and want information presented in an organized and concise manner.
    References
    Please use some references listed below an any additional you may recommend.
    Cost-Volume-Profit Analysis. (2014). Pearson Learning Solutions New York NY. Retrieved fromhttp://www.pearsoncustom.com/mct-comprehensive/asset.php?isbn=1269879944&id=12139
    Using CVP Analysis Methods to Plan Profits. (2014). Pearson Learning Solutions New York NY. Retrieved from http://www.pearsoncustom.com/mct-comprehensive/asset.php?isbn=1269879944&id=12137
    The next video puts breakeven analysis into a simple business setting.
    n.a. (2010 September 20). Breakeven Analysis – Starting a Coffee Shop – [Video file] Retrieved from http://www.youtube.com/watch?v=i7uhmGVsbUg
    The chapter below covers the information in more detail.
    Walther l. (2012). Chapter Eighteen. Cost-Volume-Profit and Business Scalability. Retrieved fromhttp://www.principlesofaccounting.com/
    Suggested Resource
    Tsorakidis N. (2009). Break-Even Analysis. Retrieved fromhttp://bookboon.com

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