You will be a party planning consultant. You will be determining whether the party you are planning for a client is financially viable. This will require research of actual suppliers and costs.

See assignment instructions, sample paper and grading rubrics attached below.

1. Determine the sales price for a ticket to your party. How did you come to this price? Remember to use the pricing strategies and objectives from the “pricing” section of our marketing overview. You also will want to “benchmark” against your competition: Who are three competitors and what are they charging? What is your competitive advantage? Tip: Use pricing strategies and objectives from Learning Module 4 (pricing) in the text.

2. Identify, research, and estimate major expenses for your party to calculate what you expect the costs will be. You should get creative here about what you need for your party (e.g., security, a band, food, etc.). Determine whether the costs noted are fixed (operating expenses that do not change no matter how many tickets are sold) or variable (costs of goods sold, which change based on the number of tickets sold). (e.g., Staples charges $5 for a roll of tickets).

3. Using this proposed pricing structure and expenses for the first year, calculate the break even point - the number of tickets you need to sell to break even and the revenue needed to break even. Use the breakeven analysis information from the “pricing” section of our marketing overview,, and the activity available under the corresponding learning module 10 to help you understand how to conduct this analysis.

4. Identify a city and venue for this party in the state of Maryland, supporting your choice using population data (HINT: U.S. Census Bureau website) and additional information that supports your reasoning.

5. Based on your target market, and using sales projection methods from the financial analysis Module 3 Prezi overview, project the potential sales (revenue) for this party. Will it exceed your break-even point? Tip: Make sure to use a strategy from the prezi overview, such as the “build up” approach.

6. Using the revenue information collected and the expense estimates, prepare an income statement (i.e., profit/loss statement) to calculate the projected profit/losses in year one for this business. Tip: Learning Module 12 can be used to help determine how to build an income statement.

7. Should we throw this party? Why or why not? Use the answers to the preceding questions to answer this question, supporting your reasoning with the financial information collected.

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1 To determine the sales price for a ticket to the party I first identified the target market for the event and the pricing objectives of the client Based on the target market and the pricing objectiv... View the full answer