One of the major activities of the City Art Museum (CAM) is a Neighborhood Outreach Program,...

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One of the major activities of the City Art Museum (CAM) is a Neighborhood Outreach Program, which was developed both as a public service and to market the museum and its other programs. One of the Outreach offerings, which is popular with both city and suburban residents, is the weekly Evening Lecture Series. The Series provides lectures on local art and history in various locations throughout the greater metropolitan area. A new museum director has been hired with the goal to make the museum more self-sustaining and less reliant on donations and government grants. One of the director's first actions was to ask the museum staff to put together detailed financial information on the individual activities. The result, shown in the accompanying table, indicates that the series operates at a loss. CITY ART MUSEUM Neighborhood Outreach: Evening Lecture Series For the Year Ending June 30 Sales revenue Costs Advertising Lecturer fees and expenses. Operating costs (staff) Space rental Food and bevarage expenses Allocated museum overhead Total costa Net loss. 387,400 $ 15,700 202,000 27,400 12,700 25,700 150,000 433,500 $ (46,100) The museum director is considering a proposal by the head of the Neighborhood Outreach Program to keep the Evening Lecture Series but expand it by offering a Weekend Lecture Series as well. The Weekend Series would be offered in a single location downtown near the museum itself. The program head estimates that the attendance of the combined Series (Evening and Weekend) would be double that of the current Evening Series. The revenue of the combined Series would be 90 percent higher because of some price discounts that would be offered. Because the Weekend Series would be new, a more intensive advertising campaign would be required. The director estimates that advertising costs for the combined Series would be 150 percent higher than their current level. Lecturer fees and anonene will incresce hu anhu 75 norcent herace of the larnor roome lead on the weekend Staff nnaratinn enete will incrasca hu 25 . www The museum director is considering a proposal by the head of the Neighborhood Outreach Program to keep the Evening Lecture Series but expand it by offering a Weekend Lecture Series as well. The Weekend Series would be offered in a single location downtown near the museum itself. The program head estimates that the attendance of the combined Series (Evening and Weekend) would be double that of the current Evening Series. The revenue of the combined Series would be 90 percent higher because of some price discounts that would be offered. Because the Weekend Series would be new, a more intensive advertising campaign would be required. The director estimates that advertising costs for the combined Series would be 150 percent higher than their current level. Lecturer fees and expenses will increase by only 75 percent, because of the larger ropms used on the weekend. Staff operating costs will increase by 25 percent. Rental costs for the Weekend Series will be $12,700 annually. Total food and beverage costs will increase by 60 percent with the new Series. The larger program will require an increase in Museum overhead of $8,700. Allocated museum overhead for the combined Series will be $35,700 annually. Required: a. Using the worksheet below, determine what will be the contribution of the expanded lecture series given these estimates. b. Are there other factors the director should consider before making a decision? Complete this question by entering your answers in the tabs below. Required A Required B Using the worksheet below, determine what will be the contribution of the expanded lecture series given these estimates. Complete this question by entering your answers in the tabs below. Required A Required B. Using the worksheet below, determine what will be the contribution of the expanded lecture series given these estimates. CITY ART MUSEUM Neighborhood Outreach: Weekend and Evening Lecture Series. Differential Revenues and Costs For the Year Ending June 30 Revenue Costs Advertising Lecturer fees and expenses Operating costs (staff). Space rental Food and beverage expenses Additional museum overhead Allocated museum overhead Total costs Net gain from combined Series $ ok nt a. Using the worksheet below, determine what will be the contribution of the expanded lecture series given these est b. Are there other factors the director should consider before making a decision? Complete this question by entering your answers in the tabs below. Required A Required B Are there other factors the director should consider before making a decision? Other factors the director should consider Additional advertising, adequate lecturer and staff Food and beverage expenses Rental costs One of the major activities of the City Art Museum (CAM) is a Neighborhood Outreach Program, which was developed both as a public service and to market the museum and its other programs. One of the Outreach offerings, which is popular with both city and suburban residents, is the weekly Evening Lecture Series. The Series provides lectures on local art and history in various locations throughout the greater metropolitan area. A new museum director has been hired with the goal to make the museum more self-sustaining and less reliant on donations and government grants. One of the director's first actions was to ask the museum staff to put together detailed financial information on the individual activities. The result, shown in the accompanying table, indicates that the series operates at a loss. CITY ART MUSEUM Neighborhood Outreach: Evening Lecture Series For the Year Ending June 30 Sales revenue Costs Advertising Lecturer fees and expenses. Operating costs (staff) Space rental Food and bevarage expenses Allocated museum overhead Total costa Net loss. 387,400 $ 15,700 202,000 27,400 12,700 25,700 150,000 433,500 $ (46,100) The museum director is considering a proposal by the head of the Neighborhood Outreach Program to keep the Evening Lecture Series but expand it by offering a Weekend Lecture Series as well. The Weekend Series would be offered in a single location downtown near the museum itself. The program head estimates that the attendance of the combined Series (Evening and Weekend) would be double that of the current Evening Series. The revenue of the combined Series would be 90 percent higher because of some price discounts that would be offered. Because the Weekend Series would be new, a more intensive advertising campaign would be required. The director estimates that advertising costs for the combined Series would be 150 percent higher than their current level. Lecturer fees and anonene will incresce hu anhu 75 norcent herace of the larnor roome lead on the weekend Staff nnaratinn enete will incrasca hu 25 . www The museum director is considering a proposal by the head of the Neighborhood Outreach Program to keep the Evening Lecture Series but expand it by offering a Weekend Lecture Series as well. The Weekend Series would be offered in a single location downtown near the museum itself. The program head estimates that the attendance of the combined Series (Evening and Weekend) would be double that of the current Evening Series. The revenue of the combined Series would be 90 percent higher because of some price discounts that would be offered. Because the Weekend Series would be new, a more intensive advertising campaign would be required. The director estimates that advertising costs for the combined Series would be 150 percent higher than their current level. Lecturer fees and expenses will increase by only 75 percent, because of the larger ropms used on the weekend. Staff operating costs will increase by 25 percent. Rental costs for the Weekend Series will be $12,700 annually. Total food and beverage costs will increase by 60 percent with the new Series. The larger program will require an increase in Museum overhead of $8,700. Allocated museum overhead for the combined Series will be $35,700 annually. Required: a. Using the worksheet below, determine what will be the contribution of the expanded lecture series given these estimates. b. Are there other factors the director should consider before making a decision? Complete this question by entering your answers in the tabs below. Required A Required B Using the worksheet below, determine what will be the contribution of the expanded lecture series given these estimates. Complete this question by entering your answers in the tabs below. Required A Required B. Using the worksheet below, determine what will be the contribution of the expanded lecture series given these estimates. CITY ART MUSEUM Neighborhood Outreach: Weekend and Evening Lecture Series. Differential Revenues and Costs For the Year Ending June 30 Revenue Costs Advertising Lecturer fees and expenses Operating costs (staff). Space rental Food and beverage expenses Additional museum overhead Allocated museum overhead Total costs Net gain from combined Series $ ok nt a. Using the worksheet below, determine what will be the contribution of the expanded lecture series given these est b. Are there other factors the director should consider before making a decision? Complete this question by entering your answers in the tabs below. Required A Required B Are there other factors the director should consider before making a decision? Other factors the director should consider Additional advertising, adequate lecturer and staff Food and beverage expenses Rental costs

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Contribution Analysis It is an approach to assessing the performance of policies and programs toward an outcome or outcomes It is used in estimating h... View the full answer