1 overhead of $8,200. Allocated museum overhead for the combined Series will be $35,200 annually.Required:a. Using the worksheet below, determine what will be the contribution of the expanded lecture series given these estimates.b. Are there other factors the director should consider before making a decision?Complete this question by entering your answers in the tabs below.Required A Required tUsing the worksheet below, determine what will be the contribution of the expanded lecture series given these estimates.CITY ART MUSEUMNeighborhood Outreach: Weekend and Evening Lecture SeriesDifferential Revenues and CostsFor the Year Ending June 20RevenueCostsAdvertisingLecturer fees and expensesOperating costs (staff)Space rentalFood and beverage expensesAdditional museum overheadAllocated museum overheadTotal costsNet gain from combined SeriesS 0incesOne of the major activities of the City Art Museum (CAM) is a Neighborhood Outreach Program, which was developed botha public service and to market the museum and its other programs. One of the Outreach offerings, which is popular with bomcity and suburban residents, is the weekly Evening Lecture Series. The Series provides lectures on local art and history invarious locations throughout the greater metropolitan area.A new museum director has been hired with the goal to make the museum more self-sustaining and less reliant on donationsand government grants. One of the director's first actions was to ask the museum staff to put together detailed financialinformation on the individual activities. The result, shown in the accompanying table, indicates that the series operates at aloss.CITY ART MUSEUMNeighborhood Outreach: Evening Lecture SeriesFor the Year Ending June 30Sales revenueCostsAdvertisingLecturer fees and expensesOperating costs (staff)Space rentalFood and bevarage expensesAllocated museum overheadTotal costsNet loss$ 386,400$ 15,200197,00026,40012,20025,200145,000$ 421,000$(34,600)The museum director is considering a proposal by the head of the Neighborhood Outreach Program to keep the EveningLecture Series but expand it by offering a Weekend Lecture Series as well. The Weekend Series would be offered in a singlelocation downtown near the museum itself.The program head estimates that the attendance of the combined Series (Evening and Weekend) would be double that of thecurrent Evening Series. The revenue of the combined Series would be 90 percent higher because of some price discountsthat would be offered. Because the Weekend Series would be new, a more intensive advertising campaign would be required..The director estimates that advertising costs for the combined Series would be 150 percent higher than their current level.Lecturer fees and expenses will increase by only 75 percent, because of the larger rooms used on the weekend. Staffoperating costs will increase by 25 percent. Rental costs for the Weekend Series will be $12,200 annually. Total food andbeverage costs will increase by 60 percent with the new Series. The larger program will require an increase in Museumoverhead of $8,200. Allocated museum overhead for the combined Series will be $35.200 annually

There are many alternative strategies to run a business. In decision-making cost which is directly…

a. Using the worksheet below, determine what will be the contribution of the expanded lecture series given these estimates. b. Are there other factors the director should consider before making a decision?

a. Using the worksheet below, determine what will be the contribution of the expanded lecture series given these estimates. b. Are there other factors the director should consider before making a decision?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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