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    CVP Analysis

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    Tawsif Hasan
    Cvp analysis case

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    © All Rights Reserved
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    CVP Analysis

    Uploaded by

    Tawsif Hasan
    89 views1 page
    Cvp analysis case

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    CVP analysis

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    Cvp analysis case

    Copyright:

    © All Rights Reserved
    Download as PDF or read online from Scribd
    Download as pdf
    89 views1 page

    CVP Analysis

    Uploaded by

    Tawsif Hasan
    Cvp analysis case

    Copyright:

    © All Rights Reserved
    Download as PDF or read online from Scribd
    Download as pdf
    of 1
    Case Analysis) Taos Museum of Southwestern Arts and Craft The answers to this case are cumulative. You can not skip any section and do the next, You may make whatever assumptions you think are necessary to answer any question, Be sure to state every assumption explicitly. You may work with other students to complete the problem set, But, you must (urn in your owa answers, You may want to use Excel or another spreadsheet to check your work, but use a calculator for the initial calculations to give yourself practice for the midterm, All of the information that you need to answer a given question is provided in the text that immediately precedes the question and the answers to the questions that precede it. Read the entire problem set before you begin, Make sure you understand the questions before vou try to answer them! The Taos Museum of Southwestern Arts and Crafts (TMSAC) presents rotating exhibits of the works of artists and artisans from the Southwestern United States. Historically, the museum has derived its support from three sources: grants, annual memberships, and visitor revenues. For the 1999 fiscal year, TMSAC ows that it will receive $564,000 in grants from various sources, It also expects 1,255 people to be supporting members of the museum, On average, supporting members give TMSAC $112.75 per year The museum expects the following mix of visitors during 1999, each paying the amount shown in the right column of the schedule Type of Visitor Percent of Total | Price Regular 65%) $6.00) [Group 15%] - $3.00) Senior Citizen 10%] $2.00 10%| $1.00) AC has $985,000 of fixed expenses each year. In addition, the museum spends an average of $.55 visitor for handouts that deseribe the exhibits on display. TMSAC estimates that it has variable electric costs of $.15 per visitor. Plus, the museum offers each visitor the option of receiving an audio cassette which describes the featured exhibit of the month, Visitors are allowed to keep the tape as a memento of their visit, Historically, these tapes have cost the museum $1.25 per copy to produce and replicate, On average, 30% of the people visiting the museum have taken advantage of the free tape offer. Problem 1. The Director of the museum has asked you to tell her the minimum number of visitors that must come 10 the museum each year in order for TMSAC to break even., Using the information given above, what is TMSAC's break-even visitor volume? Because of Tans’s lo ation in the mountains of New Mexico, the museum tends to have a scasonal Pattern to its visitor flow with proportionally more people visiting TMSAC in the summer than in the winter. In addition, revenue from grants and memberships tend to flow into the museum unevenly throughout the year, The seasonal flow of visitor, grants and membership revenues distributed throughout the year as follows ‘Taos Museum Case and its solution were written by Robert Purell, Robert F, Wagner Graduate School of Public Service, New York University. Used with permission.

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