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In: Business and Management

Submitted By fnametest123
Words 726
Pages 3
After careful consideration and analysis of this case, I have determined that there is a way for the Craddock Cup to generate enough money annually for the Craddock Youth Soccer League to reach their field-acquisition goal. The first step would be to revise the overhead-expense allocations. Because Rivaldo is employed by CYSL full-time with a fixed salary, it would be benefitial for the tournament if none of it is allocated to the Craddock Cup. This is also true for the Rent and utilities. The league will be renting 10 soccer fields from the city for 40 weeks regardless of whether or not the tournament occurs so there none of those expenses need to be allocated to the Craddock Cup. 100% of Renee Jansten’s salary will continue to be allocated to the Craddock Cup. With the revised overhead-expense allocations, the Craddock Cup will be able to generate a profit of about $5,302 a year if all other expenses and revenues remain stable. (Exhibit 1). I have determined that expanding the tournament will generate a profit. With an increase in $1,000 for advertising, 15 more college recruiters, and 20 additional face books, I calculated that the profit for adding 32 more teams to the tournament would be close to $13,000. I also determined that renting additional fields will be avoided if two days are added onto the tournament. Two days for the middle-school brackets, and two days for the high school brackets. This may increase the cost for hotels for the college recruiter’s. I believe, however, that they will be more inclined to attend the high school tournaments and not the middle-school tournaments. If this is the case, the result would be the same two night stay with the only increase being in the 15...

1 Solution for Craddock Cup Case Study
Chapter 5 1- You want to find the time value of the annuity below at end of year 3 (t=3).…...

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