The total revenue that they earn that day was below the average because they spend less money on the advertisement. The tickets sales represents 67% of the maximum possible of these 65% was to adults, as can be seen in the pie chart below of the £977 income 81% come from adult ticket sales.
2nd Night
2a ii Second night
On the second day of the school production, the adult tickets was increased from 65% to 80% as compare to the first night, that means an increased of 15%.
The OAPs tickets was also decreased from 10% to 6% as compare to the first night show and a decrease of 4% as you wouldn’t expert an OAPs to fill the place up because it is specifically meant for children. As the children’s tickets was14% as compare to the first night ticket of 25%, this shows a decreased of 11%.
The percentage of the ticket sold was 85% as compare to the first night which was 67%, an increased of 18%. This means that increasing the children’s ticket up can solve this problem
Tickets sales income, 85% of all tickets were sold. Of these 80% were to adults and 13% were to children. This resulted in high overall revenue of £1362.50
Adults’ tickets sale now represents 91% of the revenue while children are only 6%
3rd Night
On the third night of the production, there was a significant change in the production. This time, the adult’s ticket was 33% and the children tickets were 60% as compared to those two previous nights.
The children ticket was 27% higher than the adult ticket. The OAP ticket was 7% as compared to those two nights as it was 10% and the second night 6%. The percentage tickets sold was 100%. This means that all seats were filled up. adult ticket took the total revenue of tickets sold on that night even though the children had the higher tickets sold on that nigh, as the adults had 54%, the children 40% and the OAPs had 6%. This was because the children tickets were so affordable so no matter how many they come in their numbers the adults will take the lead.
As can be seen from the label above, 100% tickets sales were achieved. However adult tickets sales dropped to only 60%, which children increased to 33%. This means that adults tickets accounts for revenue only 54% of revenue. This resulted in a dropped of revenue of £1184.00 even though more tickets were sold
PROFIT & LOSS:
When all revenue from the three night of the production was calculated together. As can be seen below revenue of £3524 was achieved. This has then been compared with the theoretical maximum. Overall 65% of the potential revenue was achieved.
Total income is
1362.50
1184.50
+ 977.00
3524.00
Therefore, the maximum revenue possible is: Number of seats = 300*3=900
Maximum revenue if all tickets were sold to adults is: 900 x £6.00 =£5400.00
Percentage of actual income and Maximum possible income is = £3524 x 100
£5400
Therefore = 3524
54
= 65.3% =65%
The revenue over the three nights was:
3524.00
- 436.50
3087.50
EXPENSES OF PRODUCTION
This is the expense they spend for the production to take place.
This is the expenses they spend for the production to take place. Apparently, as you can see from the table above, they did not spend much on advertising.
Conclusion
The overall money rose for the school production was satisfactory, and will be put towards next year’s school production to help reduce the cost.
The best way to generate higher amount profit is to increase the amount of the children’s tickets. The money they put in the advertisement wasn’t enough. In other to generate money out of it, they should have put more money in the advertisement in other to bring more people to the first night show. To generate money from a production you will apparently have to put higher amount of money for you to get higher amount of profit.
The final profit is larger than any other production. The governors will need to consider the following courses of action: Retain all profit to support next production Give all profit to a charity
Give a percentage of the profit to a charity
If the charity option is chosen such as
Which charity?
Who will choose?
What percentage
Will all need to be considered by the governors. This is however outside the scope of the report.
DAVID EFFAH 6709 FINANCIAL REPORT