TASK 4 (AO5): Modeling Costs

Workbook: Task 4 – AO5 (Spreadsheet).ppt

Student Guidance – Task 4:

Themanagement team will require a breakdown of the costs and an overview of differentscenarios that might affect the success of the festival e.g. good/bad weather,advertising costs, possibility of offering camping facilities, car parking –free/charged, well known bands

Use the information belowto create your spreadsheet/model.

Costs:

• a number of stewards are required at £100 per day (approximately 1 steward for every 50 festival goers)
• a maximum of 12 bands that can play, these have been rated in three categories (below):
• “A” listed bands costing up to £5,000 each
• “B” listed bands costing up to £2,500 each
• “C” listed bands costing up to £1,000 each
• location and services costs £10,000 (this includes electricity, water, refuse, parking area)
• advertising costs of £5,000 initially

Income:
sourcesof income are:

• traders pitch rental
• Size 1 - £750 (5 to 8 available)
• Size 2 - £500 (8 to 10 available)
• Size 3 - £250 (up to 12 available)
  (there are enough plots for 25 traders)

Fromyour research for Task 1 you can investigate costs for the following:

• ticket sales (you might decide to have different prices for pre-booked and on the door)
• car parking
• camping fees

· festival memorabilia

Considerations:

• the Fire Brigade have confirmed that the venue can hold a maximum of 1500 people in order to comply with current legislation
• you have been given an initial budget of £50,000
• the festival is expected to show a profit of at least £10,000

SuccessCriteria:

Youmust show evidence that your spreadsheet model:

1. is clear and easy to read and understand
2. uses appropriate formulas and functions
3. is formatted in such a way as to be easily printed (normal and formula view)
4. shows overall profit or loss
5. is able to change values e.g. ticket prices, sales, and other costs or income, to model the effect this has on the overall profit / loss
6. can add or delete additional costs or income