Summary Craddock Cup was a regional soccer tournament organized by Craddock Youth Soccer League (CYSL).

It is an annual event which involving the participation of 32 premier high school soccer team. The CYSL manager, Jose Rivaldo is the person responsible to conduct this high- quality soccer activities. Craddock Cup is originally run for the purpose to gain profit by CYSL. The event had become a fame success among community of the region, and become the platform to recruit excellent athletes. Recently, the event undergo financial difficulties. The tournament expenses are increasing, while on the other side the sponsorship seem to be more difficult to be obtained. Until a point, Jose Rivaldo think about cancelling the event in order to secure Craddock Cup and together of his job. He undergo some research on how to solve it, in order to coup with this issue and predict the future of Craddock Cup. From the research performed, it can be said that adjustment can be made in other to reduce losses and increase profitability of organizing Craddock Cup, thus continue run the event. Adjustment of cost and expenses, together also with participation fee will be look to see the profitability and success of the event. The case was involving the topic of breakeven analysis, together with contribution analysis to determine the cut-off point of profit. Besides, it also discussed on cost behavior and other relevant cost to make a better budgeting to coup with the difficulties due to high expenses of the event conduct.

Question 2 2. Calculate the expected financial impact of adding 32 more teams to the tournament schedule. The case discuss on whether adding 32 more teams to the tournament schedule can bring more profit or not. Analysis and budgeting will be made to get the view of the profitability. A table of comparison below will show the view, relating to the relevant cost of the tournament. Basically, addition of another 32 participation will double the direct variable cost (a). But there was also not simply double the current amount for certain item. The event required the addition of field and goals. But as from the information before, there are still 2 fields which not being used and utilized in the tournament. Addition of 32 teams required the usage of 8

field, minus the 2 that already available thus resulting to 6 fields will be rented from local school together with 12 goals, which 2 goals with each fields respectively. Duration allocated is for 6 days including the time for preparation and clean up. Below are the calculation: Fields = $ 150 x 6 fields x 6 days Goals = $60 x 6 fields x 6 days Total = $ 5,400 = $ 2,160 = $ 7,560 (b)

For the cost of trophies, assumption had been made that winning teams still only two as there is no additional categories or other additional winning title. Trophies = $ 25 x 36 players = $ 900 (c) Advertising budget had been made an assumption that Rivaldo execute the new budget planning to increase by $ 1,000. (d) Hotels = $ 80 x 2 days x 15 recruiter = $ 2,400 (e) Facebooks cost also will be increased as of additional 20 facebooks. Facebook = $ 6 x 20 = $ 120 (f) Below is the analysis of addition of 32 more teams in view of comparison between current size and also in term of revenue, expenses, and profit.

Revenue Statement Current size (32 teams) Registration fee T-shirt Concession Soccer clinic Contributions Total revenue $ 9,440 4,800 17,280 4,320 14,000 $ 49,840 Additional of 32 teams (64 teams) $ 18,880 (a) 9,600 (a) 34,560 (a) 8,640 (a) 14,000 $ 85,680

Expenses Statement T-shirts Concessions Soccer clinic Player insurance Registration with state YSL Extra field rental Soccer balls Referees Trophies Hotels Facebooks Marketing and advertising CYSL salaries Total Expenses $ 1,920 8,640 2,592 2,304 1,500 432 6,400 900 4,000 450 2,200 12,000 43,338 $ 3,840 (a) 17,280 (a) 5,184 (a) 4,608 (a) 1,500 7,560 (b) 864 (a) 12,800 (a) 900 (c) 6,400 (e) 570 (f) 3,200 (d) 12,000 76,706

Profit

$ 6,502

$ 8,974

From the analysis made, it can be said that when accounting for the relevant costs related with the tournament, Craddock Cup should not be canceled. In fact from the analysis, if it is possible, Rivaldo should double the size of the tournament that is the addition of 32 more teams and make adjustment in respect to advertising and attracting recruiters.