Assignment: The Budget
Your event business has the opportunity to provide a quote for two major events. Having experienced some financial difficulties in your first year of business, you want to ensure that you choose the most feasible event for which to prepare a proposal and produce the winning quote.
The first event is a top celebrity event and it will be held at her beachfront mansion, with a budget of $150,000. The event will be held outdoors and the goal is to transform the garden area through the use of a spectacular theme. The party will be attended by 350 guests, and a lavish dinner is expected.
The second event is much larger in which an estimated 500-600 guests will be invited, with a budget of $120,000. The company is celebrating its fiftieth year of tractor and farming equipment operations. The event will be held in a large airport hangar out in the country. Food will be fairly basic while alcohol will be plentiful. Décor is not important but the entertainment will be the focal point of the event.
In a minimum of a 2-page APA formatted document, address both checklist items; Parts 1 and 2.
Discuss which of these two events you would choose in terms of its ease of financial management and its potential profitability. Provide the methodology you would use to determine the break-even point and what control system you might utilize to manage the finances.
CHECKLISTS:
Part 1
• Show a budget for each event scenario
• Calculate the breakeven point for each scenario, noting your methodology
• Explain the method you used to determine the break-even point
PART 2
• Explain which scenario you would choose based on ease of management, potential profitability, and ultimate benefit for your business
• Discuss the control system you would use to manage the finances regarding the scenario you chose and explain your reasoning.