APA 3113 Lecture Notes - Lecture 5: Profit Margin, Break Even, Standard Accounting Practice
12 Jan 2016
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How do free events generate revenue? sponsored derived funding charity option. Over priced food, services, parking, etc. there are many ways around the ticket option. For the olympics, what are the main sources of funding: sponsorship/broadcasting, ticketing and merchandise. How much money you have going in and out timing of money in and out (expenses due) Ex: food and beverage and merchandising mostly come during the event, you need to figure out where money can come from early on since a lot of expenses occur before the event. Banks as sponsors with line of credit is good: break even analysis/point (bep) How much expenses will be and how much profit you need to break even. Problem comes when you have variable costs. Can move the break even point higher up to ensure you have enough money. Can have big discrepancies in multi-day/sport events. A type of plan in number form. Ex: volunteers, food, uniforms, etc: capital budget infrastructure.
