Individual Memo
To: Jose Rivaldo
From: Shirley Fang
Date: Oct. 19th, 2014
Subject: Expanding the tournament
Introduction:
I think expanding the size of tournament is the best way to meet the target. This alternative is practical to save costs and to maximize the profits. I’m going to analyze the costs, other alternatives and implement measures to explain how the Craddock Youth Soccer League can benefit from expansion.
Analysis:
After analyzing the original plan of Craddock Cup, I found the classification of costs were not reasonable. Some costs are constant every year and would not change with the tournaments, which means they have already been counted as CYSL’s overall statement. If you discontinue the tournament, they still occur in other ways. These costs are salaries for you and CYSL rent, and they can be excluded from the tournament’s costs but put extra field rent and extra equipment rent under variable costs instead. Extra rents are only used for the Craddock Cup. The registration fee for state YSL can be moved from variable costs to fixed costs. The amount of registration fee will not vary with change of size, but if drop the Craddock Cup, CYSL will not pay registration fee anymore.
After that, I got the variable costs of the original plan are $27,638, and total fixed coasts are $15,700. CYSL benefited $6,502 in profits and but met the target of $6,000. However, if expanding the size to 64 teams, the net income will be higher. According to expanding the tournament size, the variable costs will be $54,354 in total and $849.28 per team. The fixed costs for expansion are $15,700 in total. The variable costs increase by $26,716 and the fixed costs remain the same as original plan. Because this measure doubles the size, the expenses for T-shirt, concession, player insurance, soccer balls, referees, trophies will be doubled. And your will have to pay $5,400 and $720 for extra fields and equipment respectively. The costs for hotels and face books remain constant due to no
From: Shirley Fang
Date: Oct. 19th, 2014
Subject: Expanding the tournament
Introduction:
I think expanding the size of tournament is the best way to meet the target. This alternative is practical to save costs and to maximize the profits. I’m going to analyze the costs, other alternatives and implement measures to explain how the Craddock Youth Soccer League can benefit from expansion.
Analysis:
After analyzing the original plan of Craddock Cup, I found the classification of costs were not reasonable. Some costs are constant every year and would not change with the tournaments, which means they have already been counted as CYSL’s overall statement. If you discontinue the tournament, they still occur in other ways. These costs are salaries for you and CYSL rent, and they can be excluded from the tournament’s costs but put extra field rent and extra equipment rent under variable costs instead. Extra rents are only used for the Craddock Cup. The registration fee for state YSL can be moved from variable costs to fixed costs. The amount of registration fee will not vary with change of size, but if drop the Craddock Cup, CYSL will not pay registration fee anymore.
After that, I got the variable costs of the original plan are $27,638, and total fixed coasts are $15,700. CYSL benefited $6,502 in profits and but met the target of $6,000. However, if expanding the size to 64 teams, the net income will be higher. According to expanding the tournament size, the variable costs will be $54,354 in total and $849.28 per team. The fixed costs for expansion are $15,700 in total. The variable costs increase by $26,716 and the fixed costs remain the same as original plan. Because this measure doubles the size, the expenses for T-shirt, concession, player insurance, soccer balls, referees, trophies will be doubled. And your will have to pay $5,400 and $720 for extra fields and equipment respectively. The costs for hotels and face books remain constant due to no