Question 5

Question 5 – Fylinghill Cricket Club

You are the treasurer of Fylinghill Cricket Club. At a recent meeting your secretary has received a letter from the secretary of the Esk Forest Cricket League asking Fylinghill to organise and host the running of the league’s annual cricket dinner. This is to take place in April.

Following custom, the league secretary, treasurer and chairman and their respective partners would be invited to the dinner as non-paying guests, with the club providing wine for the top table. The cost of a ticket last year was £15 excluding wine and there had been 80 paying diners. Any profit or loss on the dinner would be taken or borne by Fylinghill.

The invitation was placed on the agenda for discussion at the club’s December 1999 meeting when you (the treasurer) were asked to report on the financial risks and likely consequences of agreeing to host the dinner.

You prepare the following outline figures:

The best quote for a venue is the Cadeby Inn where there will be no charge for the room and the food would be provided @ £10.50 per head with four bottles of wine provided for the top table at £7.50 per bottle.

The Holly Beat disco has quoted £120.

Philip Gower, County Cricketer will be the after dinner speaker – fee £80, he will be also a non-paying diner.

Questions

1. Prepare a schedule showing the detail of the fixed costs and a total for the dinner. (10 marks)

2. Prepare the statement to show the contribution per ticket. (10 marks)

3. Find the break-even point for the dinner. (10 marks)

4. Prepare a statement to show the surplus or deficit at the following volumes of ticket sales:

60, 70, 80. (10 marks)