Conclusion and Qm

Conclusion:

Using simple formulas in Microsoft Excel, we have arrived with the following numerical results to help President Starr decide whether to build a new stadium at SWU.

  | TOTAL VALUE

(per game) | Soft drink | Coffee | Hot dogs | Hamburgers | Misc. Snacks |

Total Fixed Cost/item | $ 26,060.00 | $ 6,515.00 | $ 6,515.00 | $ 5,212.00 | $ 5,212.00 | $ 2,606.00 |

Breakeven Unit Sales | 25,191 | 8,687 | 4,343 | 4,343 | 3,475 | 4,343 |

Breakeven Dollar Sales | $ 43,433.33 | $ 13,030.00 | $ 8,686.67 | $ 8,686.67 | $ 8,686.67 | $ 4,343.33 |

  | Spend per Person | Breakeven Dollar Sales | Attendants |

Breakeven/person for 35k pax | 1.24 | $ 43,433.33 | 35,000 |

Breakeven/person for 60k pax | 0.72 | $ 43,433.33 | 60,000 |

For a game with a 35,000 people in attendance, each person would only need spend $ 1.24 to cover for both fixed and variable costs and only $ 0.72 for a 60,000 attendance per game.

These results were obtained by computing for the total fixed cost per game and having the revenue for food and beverages cover for it.

Given that the needed amount of expenditure from each person is minimal, the likelihood of breaking-even for each game in the new stadium is very high.

We have also employed the use of QM to validate these results and can conclude that building the new stadium would be a sound decision for President Starr.

IV. ALTERNATIVE APPROACHES (Janice and Ara)

V. QUANTITATIVE METHOD EMPLOYED AND APPLICATION (Janice and Ara)

The final output for this analysis is to determine how much each game goer needs to spend to hit the stadium’s breakeven point per game. We have employed simple excel calculations to arrive on the needed information to be presented to President Starr...