Prepare three contribution-format income statements for the Bullarama event based on: 5a) an optimistic projection (no onsite competitors), 5b) a conservative projection (one onsite competitor), and 5c) a pessimistic projection (two onsite competitors). Explain and compare each of them. 6. Explain several non-financial advantages and disadvantages of attending the Bullarama event. 7. Cat and Joe’s Pig Rig operates for 180 days each year. 7a) Explain several pros and several cons of operating for 180 days. 7b) Compare/contrast the major advantages and disadvantages of operating for 180 days vs. a full year 365 days. 7c) Which would you recommend and why?

FACTS
		Regular				Special events
sales price		$ 12.00			sales price		$ 9.00
variable costs	40%	$ 4.80			variable costs	40%	$ 4.80
						Discount	$ (1.90)
Contribution margin		$ 7.20			Contribution margin		$ 6.10
			per day
Fixed costs		$10,000	$ 55.56		Special events one time costs
					Donation		$100
Operational year in days		180			Added fuel costs		$140
Corporate tax rates		20%			Added car cost – fuel		$30
Predicting daily Demand for sandwiches
Average daily demand		100
Plus or minus		25
Predicting demand at a special events
Estimated attendance	700		Bullarama event tickets sold
Percentage who bought food	35%
Predicted food buyers	245
Divided by number of vendors	3
Predicted sandwiches sold	81.66667
Marketing budget	Zero dollars		All free social media

Q2 BE
			Regular
	sales price		$ 12.00
	variable costs	40%	$ 4.80
	Contribution margin		$ 7.20
	Fixed costs		$10,000
			1,389

 

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