Sam 445 assign 4 Assignment Example | Topics and Well Written Essays - 750 words

Sam 445 assign 4 - Assignment Example Since a minor league baseball team does not incur in revenues from advertising or ticket sales like a Major League Baseball team does, its survival is financially dependent on community and business donations, team fundraisers, and sales from the food concession stand in order to cover all the budgeted expenses for the year. The sales of the food concession stand also help supplement and maintain a general expense fund to cover travel expenses and any unexpected team or organizational financial contingencies and expenses. As the concessions manager it is his responsibility to maintain detailed financial receipts and organizational records in order to be able to calculate overall fixed costs and unit costs. Additionally in order for management to estimate the yearly total expenses the concessions manager provides the team general manager with estimated yearly concession food stand budgets and food costs budget in order to complete the yearly team budget. For this year the minor baseball league schedule calls for a 70 game season, plus training and team practice sessions. Cost-Volume Profit (CVP) analysis is one of the most powerful tools available to managers of all organizations big or small. The CVP process helps managers and internal stakeholders to understand how overall volume, costs and profits are all interrelated and analyzes the behavior of the following five elements (Garrison & Noreen, 2003): There are certain steps the concessions manager together with other managing team members must perform in order to utilize CVP effectively and be able to estimate total revenues and total surplus profits. The first step is to estimate the average number of individuals that will attend the team regular season games, practice sessions as well as estimating how attendance will increase if the team qualifies for the playoffs. The second step is to estimate based on