Cradock Case

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...