ACCTG 835-Advanced Managerial Accounting
The Craddock Cup
February 10, 2015
On my honor, as a student, I have neither given nor received unauthorized aid on this academic work.
February 10, 2015
Jose Rivaldo, General Manager
Craddock Youth Soccer League (CYSL)
1234 Anderson Ave.
Manhattan KS 66502
Dear Mr. Rivaldo,
I appreciate the opportunity you provided for me working as consultants to access your business. I conducted an analysis of the profit budget depend on the facts and information you provided to me as follows:
The Craddock Youth Soccer League (CYSL) provides high-quality soccer activities for potential young soccer players, it also held the Craddock Cup which attracted a number of premier high school soccer teams who participated every year. Each year, 32 teams attended to the tournament: half of the teams belong to the bog’s high-school bracket, and another half belong to the girl’s high-school bracket. Each team playing four games throughout the course of the tournament. The profit of the tournament come from team registration fees, corporate sponsorships, T-shirt sales, concession sales, and participation fees for soccer clinics.
The main issue of CYSL is that holding the Craddock Cup may lead to a loss of money each year due to tournament expenses continued to rise, while corporate sponsorships remained difficult to obtain. Specifically, there are there issues you asked to address:
1) In determining whether to keep or drop the Craddock Cup, review the overhead expenses allocations to see if they should be revised or eliminated.
2) Calculate the expected financial impact of adding 32 more teams to the tournament schedule.
3) Calculate the break-even increase in registration fees per team for 64 teams given a $1,000 increase in advertising expense, 15 more college recruiters, and 20 additional face books.
The attached report will provide specific recommendations that...