Robin Spurlock is the director of the Mossbank Museum of Science and Natural History in Des Moines,

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Robin Spurlock is the director of the Mossbank Museum of Science and Natural History in Des Moines, Iowa. The museum is housed in an architecturally renowned facility. The five-story atrium provides a magnificent place to hold gala receptions and other events. Robin currently is in a quandary and seeks your advice.
A local children’s charity has talked with Robin about using the atrium for the first Saturday of October. (They have not gotten around to signing a contract yet.) The conversation occurred almost a year ago because the charity wanted to get the best rate. Robin was delighted to help out, particularly because October typically is a slow month for the museum. She only charged the charity $500 to rent the atrium rather than the normal rate of $2,000 per day, even though the event would have no catering or other direct monetary benefits to the museum. The children’s charity plans to use the atrium for the grand finale of a well-advertised art contest they are holding to raise money. The 100 finalists in the art contest would have their paintings showcased in the atrium, and numerous prizes would be awarded. Robin knows that the contest has spurred a great deal of interest among grade school children, including her own daughter, Emma.
It is now the middle of September, and one of the museum’s corporate donors has contacted Robin about renting the atrium for the first Saturday in October. The corporate donor wishes to use the facility to hold a black tie event welcoming their new president and chief executive officer. The firm is willing to pay the full $2,000 rental fee. In addition, Robin knows that the museum will get 10% of the catering contract in return for use of the museum’s kitchen and other facilities. The catering contract is likely to be around $15,000.
After Robin apprised the corporate donor of the conflict, she received a call from one of the corporation’s directors. In a cordial conversation, the director implored Robin to consider fitting the event in because other dates and locations would not work as well. The director also took the opportunity to gently remind Robin of his corporation’s past support for the museum and the board’s desire to “do it right” for the reception. He also hinted that the museum might get a nice “surprise” during the event.
Robin would like to both honor her commitment to the children’s charity and be responsive to the corporate donor. However, she knows that it is not physically feasible to hold both events the same day.

Required:
What quantitative and qualitative factors should Robin consider in her decision? Which factors do you believe are most important to Robin’s decision?

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Managerial accounting

ISBN: 978-0471467854

1st edition

Authors: ramji balakrishnan, k. s i varamakrishnan, Geoffrey b. sprin

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