this is a different case then the ALLTEL pavilion case, please don't give me the alltel case study answers. they are not correct, need questions 4-6 please and thank you by tonight

Cine day in early November. Pam Berg. Manager of the Coastal Credit Union Music Park. was reviewing the operating results for the yearjust completed in preparation for the executive board meeting the following Friday. While the year ended in the black. she was disappointed that the Coastal Credit Union Music Park failed to earn the budgeted profit goal. This was the second year since Ms. Berg assumed the manager's position at the Coastal Credit Union Music Park. After the somewhat disappointing first year. she was determined to exceed the budgeted profit In the coming year. While not all events developed exaclly as expected at the time of preparing the budget for the year. there were no major surprises during the year. Yet. the operating results are below the budgeted goal. In addition. Pam was frustrated by the lack of clear guidelines for contract negotiations with artists. for setting ticket prices. and in dealing with unexpected musket sales for certain concerts. THE Coastal Credit Union Music Park FDR Ll'v'E ENTERTAINMENT The Coastal Credit Union Music Park in Raleigh. North Carolina is an outdoor amphitheater that provides live concerts to the public from April lhrough Cctober each year. hosting as many as half a million patrons a year. The seven-month season usually hosts an average of 49 concerts. and 12 year- round Wand manage each season. Live Nation Entertainment Inc. operates the pavilion. Live Nation is one of lhe largest diversied promoters. producers. and venue operators for live entertainment events in the United States. It has T1 venues either directly owned or operated under lease or exclusive booking arrangements in 29 of the top 59 U.S. markets. including 14 amphitheaters or pavilions in 9 of the top 19 markets. Mwants to be lhe nightlife forthe Triangle [Raleigh-Durham-Chapel Hill. NC] and eastern North Carolina. and one of the most beautiful. technologically advanced. and successful amphitheaters in the world. It features the most modern state-of-the-art acoustics and video of any facility of its kind. In the last few years. Coastal Credit Union Music Park staged shows by lhe Dave Matthews Band. Alan Jackson. Brooks s Dunn. Toby Keith. Santana. Tim McCraw. Aerosmith. James Taylor. Jimmy Buffett. and many other national. regional. and local artists. The Pavilion claims. "There isn't a bad seat in the house. Whether you choose to spread a blanket on our gently sloping festival lawn or select a reserved seat in our pavilion seating area. you are guaranteed a great view of the action on the stage" [Coastal Credit Union Music Park website]. Exhibit 1 shows the stage and seating of the amphitheater. HistoryIElevelopment The city of Raleigh and Pace Entertainment Company of Houston. Texas jointly built the Coastal Credit Union Music Park in 1991. Pace Entertainment and Cellar Door Inc. of Raleigh. NC had the initial contract to manage the Pavilion. Hardee's Food systems. Inc. of Rocky Mount. NC. the original sponsor of the amphitheater. paid an annual fee to carry its name and logo on all signs and ads regarding the amphitheater. On February 3. 1999 thptelcom] became the title sponsor forthe amphitheater. The demand for the outdoor facility came about because the rapidly growing city of Raleigh lacked a l'l'IEJDI' entertainment complex. in the late 19303 PECB Entertainment and lll"iEl city 0f Raleigh CEI'I'IE t0 an agreement to build the facility. The city of Raleigh would own the land while Pace Entertainment would own the facility and assume sole operations of the facility; Cellar Door would do the booking for all the concerts. Pace Entertainment would pay income taxes on earnings from the use of the facility. In 2MB. Live Nation Entertainment Inc. acquired Pace Entertainment Inc. The amphitheater facility and its employees became partof Live Nation Entertainment Inc. Also. in 2009 Live Nation Entertainment Inc. acquired Cellar Door Inc. and merged with Clear Channel Communications Inc.. one of the largest owners of radio stations in the country. This move brought together both worlds of the entertainment business. While the company has diverse holdings. the philosophy of Live Nation is "One Company. Cne Mission." Many companies that are now owned by Live Nation were at one time hitter rivals in the Whosiness. These companies now maintain good working relationships within Live Nation. A key goal for Live Nation is for the net operating income of each of its holdings. including the Coastal Credit Union Music Park. to grow 5 percent each year. The Pavilion competes with the REC Center [http:fhvwwrbccentencom] at North Carolina State University in Raleigh [NCSU]. the Dean Smith Activities Center [http:i'i'tarhee|h|ue.ocsn.comigenreli' 9231aad.htm|] atThe University of North Carolina in Chapel Hill. NC {UNC}. and the 1viertzcn Wireless Amphitheater in Charlotte. NC [http:lewxerizonwirelessamphitheater.comichaitottei']. among others. In contrast to the facilities at NCSU and UNC that offeroniy indoor events. the Pavilion offers outdoor as well as sheltered seating for its events. Marketing. Cperations. and Accounting When the marketing department plans a promotion for an upcoming event. it coordinates with the sales department to see if there is a conflict in sponsorship. Marketing also coordinates with the operations department to effectively manage the activities on show days. Finally, the budget of each department (sales, marketing, and operations) is reviewed by the accounting department, which provides overall financial management of the project. Bringing Concerts to Reality A concert becomes reality in many steps. First, a group or performer with an interest in performing at Coastal will discuss with Cellar Door, Inc. and the Pavilion the possibility of performing at the Pavilion, and look at the open dates. Upon reaching an agreement, Cellar Door, on behalf of the Pavilion, signs a contract with the booking agent for the performer. A time is specified for gate openings, and once the gate is opened the show is underway. The job of the staff during a concert is to make sure every customer of the Coastal Credit Union Music Park has a pleasant experience and that the mission of the company is clearly seen by everyone that "a concert ... it's better live." Clean Sweep Inc. of Raleigh handles the cleanup after a show. Key Business issues Marketing has an important role in the success of the Coastal Credit Union Music Park, but marketing expenditures are carefully watched. For every show, the marketing budget is limited to $25,000. For many shows it is difficult to stay within the budget, since the Pavilion serves a five-market region consisting of Raleigh-Durham, Fayetteville, Wilmington, Greensboro, and the Carolina Coast. Most of the marketing budget is spent on advertising with radio, TV, and social media in the designated regions. Prior to developing advertising plans, the marketing staff analyzes ticket sales geographically over the five-market region. It is important to know the demographics of the five regions and compare them with the profile for each performer. The more Coastal Credit Union Music Park can know about the fans, the more they know where to spend the $25,000. Live Nation develops measures of performance and profitability for each advertising media, by region. This type of analysis is important to the Coastal Credit Union Music Park because increased ticket sales, through effective advertising, not only affect ticket revenues, but also revenues from parking, merchandise, and concessions. It is also important because of the increased cost of advertising. The advertising rates in the Raleigh-Durham region are comparable to the rates in Washington, D.C. The rates are up 50 percent over the last five years, while the budgets per show are only up 15 percent over this time. The cost of the performing artist has also increased dramatically. The average fee for an artist is approximately $260,000. Some artists are paid on a fixed-fee basis, while others are paid on a per capita basis. Generally, the most popular artists seek a per capita contract because they are confident of a high level of attendance. In contrast, the artist paid a fixed-fee is guaranteed the same fee whether 100 or 20,000 people attend (the capacity of the Pavilion is approximately 20,000 attendance). On average, the total number of paid tickets per fixed-fee concert is 8,000.The role of marketing and advertising is especially important for xedcteeshows. lCline method the Pavilion uses in addition to advertising is to distribute "comp\" tickets {comp tickets are free tickets distributed throughout the community] to build interest In the Pavilion that will later be realized in paying customers. Comp customers also bring in revenue for parking, concessions, and merchandise sales. In a fixed-fee concert, the number of comp tickets is approximately 25 percent of the numberof paying tickets, while a per capita show has no more than 2.5 percent. Because of the increasing cost of the performing artists, Coastal Credit Union Music Park tries to reduce Woosts. Wis; costs at Coastal Credit Union lli'lusic Park include expenses for sales, marketing, parking, security, concessions. and merchandise. Since assuming the manager position, Pam has developed several avenues to reduce Womb andior increase revenues and prots, including reducing expenses, having the parking service pass out yers for upcoming events, trading "comp" tickets for online spots in the radio industry, and giving local businesses tickets in exchange for advertising on their premises. Revenues, Costs, and Flash Report for the KFES Allstars Concert Exhlb 2 is a mock ash report for an illustrative xed-fee show, the KFHS Allstars. A ash report is a projection of costs and revenues for a scheduled concert. The guaranteeitalent cost {$26,635} is the amount the KFES Allstars are guaranteed for the show. Projected sales lithe number of projected paying ticket holders, while the "drop mum\" is total attendance, including both paid and comp tickets. Setting ticket price is often done together with the performer, taking into consideration Live Nation's national and regional pricing policies, prices of comparable venues, and the Pavilion's desired profit for the concert. Pam uses the flash report to plan potential concerts and to evaluate the success of concerts already presented. The report shows the variety of revenues and costs for a concert, and the projected prot for the concert. The ash report projects total revenues including ticket sales, parking, food, and merchandise based on per capita [drop count] rates. Ticket sales are In four ticket categories: A seats and El seats are regular price tickets for the reserved and lawn seating sections respectively; C and El seats are promotional {discount} price tickets for reserved and lawn seating, respectively. Cther revenues include per capita facility charges paid by the sponsoring corporation for naming rights [based on paid ticket holders] and a per capita service charge paid by the performer for food, transportation, and other services. Not included are the annual lease payments for 1tl'lP seats at $1t],tltlll per year. Patrons to the VIP seats also g.m pay "IE tICK'I! price 0f int-IBVBI 53313. Reserved and lawn seating areas are shown in Exhibit 1. The parking, food concession, and merchandise operations are outsourced to other service providers, so the direct costs for parking, merchandise and concessions are determined based on contracts with the service providers that include both a percentage [1D percent} of applicable revenues and a xed fee. Operating expenses include an allocation of the total of fixed production and operations costs for the season, the advertising expenses for the KFBS Allstars event, and other variable expenses. These are then total operating expenses. REQUIRED 1 . How would you describe the competitive strategy of the Coastal Credit Union Music Park? Given the firm's strategy, what are the critical success factors for the Pavilion to achieve its goal of continuous annual growth in operating income? 2. Complete two selected cost-volume-profit analyses for the show illustrated in Exhibit 2, the KFBS Allstars (Think of there being two products - Regular Tickets and Comp Tickets): a) How many tickets must the Coastal Credit Union Music Park sell to break even for KFBS? b) How many tickets must Coastal sell to earn $30,000 operating income after taxes, assuming a 20 percent tax rate? 3. What should be the average ticket price for the KFBS concert if the fixed-pay fee is $300,000 and the Music Park expects to sell 7,000 tickets and wants to earn $30,000 after 20 percent in taxes?4. Negotiating the fee for the KFBS Allstars: fixed-pay or per capita contracts: a) What is the maximum fixed fee that the Pavilion can pay the KFBS Allstars if the Pavilion wants to earn $45,000 after 20 percent tax and expects the show to have an average ticket price of $36.29? Assume the show is expected to draw 7,000 paying ticket holders. b) What is the maximum fixed fee that the Pavilion can pay the KFBS Allstars if the Pavilion wants to earn $45,000 after 20 percent tax and expects the show to have an average ticket price of $36.29? Assume, including 25 percent comp tickets, the show is expected to be a sell-out. c) Independent of (a) and (b), what is the maximum per capita fee that the Pavilion can pay the KFBS Allstars, whose concert is expected to be a sellout, if the Pavilion wants to earn $ 180,000 after 20 percent tax from an average ticket price of $33 per ticket? (zero comp tickets can be assumed) 5. Examining the Concessions contract - see exhibit 3 where costs for concessions for all events in 2020 were reported along with the attendance at each of the events. a) Using regression estimate the cost equation for concessions for 2020. b) Compare the results of variable and fixed costs as indicated in your equation with the contract for concessions in Exhibit 2. c) Make a recommendation as to whether Coastal should handle concessions in house (results for 2020) or outsource to the provider in the contract shown in Exhibit 2 6. Problems with the parking - in 2022 Coastal finds out that its parking lot needs extensive repairs. It can be done in sections so that only one quarter will be unusable at a time but must find a solution for for additional parking for big concerts. They find two possibilities - one is close by so that event goers can walk to the venue easily - this can be rented for $2,000 for each event needed but one month notice must be given to rent it. A second option is further away and is only available to rent for the entire year for $15,000. This location would require the operating of transportation between the site and the venue when used for events. A local transportation company is willing to provide shuttle service to and from the venue for $400 per event. a) Analyze the costs and profitability between the two parking options if Coastal continues to charge for parking consistent with Exhibit 2. You will need to make some assumptions so make those clear. b) How would your analysis change if you could rent out spots in the further parking lot for hourly parking when it is not being used for events? Explain what information you would need and how you would apply it. c) Besides your estimated costs, what other considerations might you use in making this decision?The Pavilion can accommodate 20,090 fans with 7,090 reserved seats directly in front of the stage (covered seating in sections ] through 9 and VIP seating) and another 13,000 on the spacious lawn. It has 78 theater-style VIP boxes that can accommodate 4, 6, or $ people. In addition to positioning for prime viewing, patrons in VIP boxes also enjoy amenities such as wait staff service at their seats, personalized parking, and exclusive membership to the VIP Bar & Grill. Directly in front of sections 4, 5, 8, and 9 is seating with an elevated floor that provides excellent views of the stage for patrons with disabilities and additional seating for the hearing or visually impaired. Lawn Seating 3 Reserved, Covered STAGE SeatingExhibit 2 Flash Report for the KFBS Allstars Concert Event Month 7 Event Date 07/31/22 Projected Sales A Seats 2,978 B Seats 2,945 C Seats 1,856 D Seats 881 Total 8,660 Ticket Price A Seats 58.00 B Seats 35.00 C Seats 16.00 D Seats 10.00 Projected Revenue $ 314,305.00 Average Ticket Price S 36.29 Guaranteed Talent Cost $ 260,635.00 Attendance (includes Comp) 10,825 Other Ticket Revenue Per ticket facility charge 3.50 Per ticket service charge 2.00 Projected Revenue from ticketing $ 361,935.00 Per sold ticket 41.79 Ancillary Revenues (per all attendees including comps) Parking 6.00 Concessions 9.00 Merchandise 4.00 19.00 Ancillary Contract TermsParking S per S 0.60 Per attendee 17.000.00 event Concession S per S 2.70 Per attendee 40,000.00 event Merchandise S per S 0.80 Per attendee 22,000.00 event Fixed Cost per Event Production 24,000 Operations 21,600 Advertising 25,000 Total $ 70,600 Other Variable Costs including Insurance and supplies $3.00 Per attendee Exhibit 3 Event Attendance Cost 7,240 58,475 2 13,323 79,457 3 17,126 80,898 4 13,268 72,912 5 6,132 54,080 6 15,608 75,544 7 17,280 77,808 8 11,883 70,153 9 7,878 61,529 10 13,048 62,310 11 6,125 50,917 12 10,525 68,818 13 13,594 66,779 14 3,771 56,489 15 11,485 62,002 16 7,119 60,096 17 9,002 57,992 18 9,196 55,506 19 14,246 76,828\f