CHEN ARENA

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					CHEN ARENA




   MIS 235
   GROUP 7
 SPRING 1999
    CHEN ARENA
 CHEN ARENA




  Was named in honor of Dr.
Chen for all of the many hours
of dedication spent as the head
    of the MIS department!
  Financial Analysts

 Herb  Portillo
 Angela Saraceno
 Staci Garrett
 Jon Dawn




          CHEN ARENA
             Cover Letter:
March 31, 1999

Gonzaga University
Board of Directors
E 502 Boone
Spokane, Washington 99258-0001

Board of Directors:

We, the member of the Athletic Financial Analysis Committee
of the Board of Directors, have completed our research on the
proposal for the Chen Arena as of March 30, 1999. The
financial analysis covers the previous four years. The
committee utilized the DSS (Decisions Support Systems) of
Visual IFPS/Plus and Microsoft Excel to arrive at conclusions.

Included in this report are the following. Project summary,
Project Goals and Objectives, IFPS Data material (base model,
base solution, standard report, customized report, graph 1,
graph 2, what if case and goal seek case), Microsoft Excel
material, project conclusion report (What and how was the
project scenario accomplished), conclusion, and Powerpoint
presentation copy.


Sincerely,

Angela Saraenco
Herb Portillo
Staci Garrett
Jon Dawn

                         CHEN ARENA
          Project Summary

   The four group members will pose as
    member of the Athletic Financial Board
    of Directors.
     – Under these positions we will look
        at the 1995, 1996, 1997, 1998 for
        the attendance for the Martin Centre.
   It is our goal as a group representing
    the schools Board of Directors to assist
    in the planning and directing of the
    university to fulfill these goals of the
    founders. Thus with the information
    that we currently have we will utilize
    the decision support system of Visual
    IFPS/Plus to help make these plan.

                  CHEN ARENA
Goals and Objectives

   Profitable
   Increase
    Community
    Involvement
   Increase
    Publicity
   Host Larger
    Events ~
    NCAA
    Tournament
   Lower Ticket
    Prices By
    Increasing Sales
                CHEN ARENA
Financial Concerns

                  Ticket Price
                  Future
                   Enrollment At
                   GU
                  Continuing
                   Interest in
                   Sporting Events
                  Source of
                   Funding For the
                   New Arena




      CHEN ARENA
   Gonzaga University
   Mission Statement
Gonzaga University belongs to a long and
 distinguished tradition of humanistic,
 Catholic, and Jesuit education. We, the
 trustees and regents, faculty,
 administration and staff of Gonzaga, are
 committed to preserving and developing
 that tradition and communicating it to our
 students and alumni. As humanistic, we
 recognize the essential role of human
 creativity, intelligence, and initiative in the
 construction of society and culture. As
 Catholic, we affirm the heritage which has
 developed through two thousand years of
 Christian living, theological reflection, and
  authentic interpretation.
                 CHEN ARENA
                            Variables

   Net Income             Ticket Price
    Before Tax              –   Student
   Net Income              –   Adult
    After Tax               –   Child (12 and
                                Under)
   Concession
                            –   Senior (65 and
    Sales
                                Over)
   Total Cost
                           Total Quantity
   Concession              Sold
    COGS
                           Revenue
   Fixed Cost
                           Number of
   Tax Rate                Games
   Variable Cost          Taxes
               CHEN ARENA
CHEN ARENA




 Visual IFPS/PLUS:
                     CHEN BASE
                      MODEL
COLUMNS 1..4, TOTAL
SP:STUDENT PRICE=0
AP:ADULT PRICE=6, PREVIOUS + 1
CP:CHILD PRICE=3, PREVIOUS + .50
SEP:SENIOR PRICE= 5 FOR 2, 6
NOG:NUMBER OF GAMES= 25, PREVIOUS + 5 FOR 2, 33
SQS:STUDENT QUANTITY SOLD=3000 * NOG:, 3500*NOG:, 3550*NOG:
AQS:ADULT QUANTITY SOLD=6000*NOG:, 5700*NOG:
CQS:CHILD QUANTITY SOLD=4000*NOG:, 3900*NOG:
SEQS:SENIOR QUANTITY SOLD=2000*NOG:
TQS:TOTAL QUANITITY SOLD=SQS:+AQS:+CQS:+SEQS:
REVENUE=(SP:*SQS:) + (AP: * AQS:) + (CP: * CQS:) + (SEP: * SEQS:)
TOTAL COSTS= FIXED COSTS + VARIABLE COSTS
FIXED COSTS= 800000, PREVIOUS * .80, PREVIOUS * 1.05
VARIABLE COSTS= 1000000, PREVIOUS * .70, PREVIOUS * 1.05
STARTUP COSTS= 250000, 0
TAX RATE= IF NIBT: .LE. 0 THEN 0'
ELSE IF NIBT: .GE. 1500000 THEN 45%'
ELSE IF NIBT: .GE. 1000000 THEN 40% ELSE 35%
NIBT:NET INCOME BEFORE TAX= REVENUE - TOTAL COSTS - STARTUP COSTS'
+ CONCESSION REVENUE
TAXES=NIBT: * TAX RATE
NIAT:NET INCOME AFTER TAX= NIBT: - TAXES
CONCESSION SALES= TQS: * 2, TQS:*2.5, TQS:*2.75, TQS:*2.8
CONCESSION CGS= TQS: * 1, TQS:*2, TQS:*2.05
CONCESSION REVENUE= CONCESSION SALES - CONCESSION CGS
REDEFINE TOTAL= SUM(C1..C4)
REDEFINE TOTAL FOR AP:, CP:, SP:, SEP:, TAX RATE= SUM(C1..C4)/4


                          CHEN ARENA
                 IFPS Base Model:
                        Default Solution
                        YEAR 1         YEAR 2          YEAR 3          YEAR 4          TOTAL          PERCENT
STUDENT PRICE                     0               0               0               0              0          0
ADULT PRICE                       6               7               8               9             7.5         0
CHILD PRICE                       3              3.5              4              4.5           3.75         0
SENIOR PRICE                      5               5               6               6             5.5         0
NUMBER OF GAMES                  25              30              35              33            123          0
STUDENT QUANTITY SOLD     75,000.00     105,000.00      124,250.00      117,150.00      421,400.00        4.91
ADULT QUANTITY SOLD      150,000.00     171,000.00      199,500.00      188,100.00      708,600.00        8.25
CHILD QUANTITY SOLD      100,000.00     117,000.00      136,500.00      128,700.00      482,200.00        5.62
SENIOR QUANTITY SOLD      50,000.00      60,000.00       70,000.00       66,000.00      246,000.00        2.86
TOTAL QUANITITY SOLD     375,000.00     453,000.00      530,250.00      499,950.00 1,858,200.00          21.64
REVENUE                 1,450,000.00 1,906,500.00 2,562,000.00 2,668,050.00 8,586,550.00                    0
TOTAL COSTS             1,800,000.00 1,340,000.00 1,407,000.00 1,477,350.00 6,024,350.00                 70.16
FIXED COSTS              800,000.00     640,000.00      672,000.00      705,600.00 2,817,600.00          32.81
VARIABLE COSTS          1,000,000.00    700,000.00      735,000.00      771,750.00 3,206,750.00          37.35
STARTUP COSTS            250,000.00               0               0               0     250,000.00          0
TAX RATE                          0             0.35            0.45            0.45           0.31         0
NET INCOME BEFORE TAX    -225,000.00    793,000.00 1,526,175.00 1,565,662.50 3,659,837.50                   0
TAXES                             0     277,550.00      686,778.75      704,548.13 1,668,876.88             0
NET INCOME AFTER TAX     -225,000.00    515,450.00      839,396.25      861,114.38 1,990,960.63             0
CONCESSION SALES         750,000.00 1,132,500.00 1,458,187.50 1,399,860.00 4,740,547.50                     0
CONCESSION CGS           375,000.00     906,000.00 1,087,012.50 1,024,897.50 3,392,910.00                   0
CONCESSION REVENUE       375,000.00     226,500.00      371,175.00      374,962.50 1,347,637.50             0
                                         CHEN ARENA
      IFPS: Customized
           Report
WIDTH 80,23,10,2
COLUMNS 1-5
\\
CENTER NEW GONZAGA ARENA FINANCE REPORT
CENTER DATE OF REPORT: *DATE*
\
\TIME OF GENERATION: *TIME*
\           ---*PAGE*---
SPACE 2
COLUMNS TITLES YEAR 1, YEAR 2, YEAR 3, YEAR 4, TOTAL
*
\TICKET PRICES
UNDERLINE=
STUDENT PRICE, ADULT PRICE, CHILD PRICE, SENIOR PRICE
UNDERLINE
SPACE 2
NUMBER OF GAMES
UNDERLINE
\QUANTITY SOLD
UNDERLINE=
STUDENT QUANTITY SOLD, ADULT QUANTITY SOLD, CHILD QUANTITY
SOLD,'
SENIOR QUANTITY SOLD
UNDERLINE=
SPACE 2
REVENUE, TOTAL COSTS, FIXED COSTS, VARIABLE COSTS,'
STARTUP COSTS, TAX RATE, TAXES, NIBT:, NIAT:
SPACE 2
\CONCESSION
UNDERLINE=
CONCESSION SALES, CONCESSION CGS, CONCESSION REVENUE

                        CHEN ARENA
 Customized Report
     NEW GONZAGA ARENA FINANCE REPORT
              DATE OF REPORT: 04/21/99
TIME OF GENERATION: 17:55
          --- PAGE 1---
                    YEAR 1 YEAR 2 YEAR 3 YEAR 4 TOTAL
TICKET PRICES
=============
STUDENT PRICE                .00     .00      .00     .00    .00
ADULT PRICE                6.00      7.00     8.00      9.00   7.50
CHILD PRICE                 3.00     3.50     4.00      4.50   3.75
SENIOR PRICE               5.00     5.00      6.00     6.00   5.50
           -------- -------- -------- -------- --------
NUMBER OF GAMES                25.00 30.00 35.00 33.00 123.00
           -------- -------- -------- -------- --------
QUANTITY SOLD
=============
STUDENT QUANTITY SOLD 75000 105000 124250 117150 421400
ADULT QUANTITY SOLD 150000 171000 199500 188100 708600
CHILD QUANTITY SOLD             100000 117000 136500 128700 482200
SENIOR QUANTITY SOLD 50000 60000 70000 66000 246000
           ======== ======== ======== ======== ========

REVENUE        1450000.0 1906500.0 2562000.0 2668050.0 8586550.0
TOTAL COSTS    1800000.0 1340000.0 1407000.0 1477350.0 6024350.0
FIXED COSTS     800000.00 640000.00 672000.00 705600.00 2817600.0
VARIABLE COSTS 1000000.0 700000.00 735000.00 771750.00 3206750.0
STARTUP COSTS 250000.00      .00    .00    .00 250000.00
TAX RATE           .00   .35    .45    .45    .31
TAXES           .00 277550.00 686778.75 704548.13 1668876.9
NET INCOME BEFORE TAX -225000 793000 1526175 1565662.5 3659837.5
NET INCOME AFTER TAX -225000 515450 839396.25 861114.38 1990960.6

CONCESSION
==========
CONCESSION SALES   750000.00 1132500.0 1458187.5 1399860.0 4740547.5
CONCESSION CGS    375000.00 906000.00 1087012.5 1024897.5 3392910.0
CONCESSION REVENUE    375000.00 226500 371175.00 374962.50 1347637.5



                               CHEN ARENA
                IFPS: Goal-Seek
                        Break Even Point
STUDENT PRICE                   6.33              0              0            0            0            0
ADULT PRICE                        6              7              8            9           10           11
CHILD PRICE                        3            3.5              4          4.5            5          5.5
SENIOR PRICE                       5              5              6            6            6            6
NUMBER OF GAMES                   25             30             35           33           33           33
STUDENT QUANTITY SOLD      75,000.00     105,000.00     124,250.00 117,150.00 117,150.00 117,150.00
ADULT QUANTITY SOLD       150,000.00     171,000.00     199,500.00 188,100.00 188,100.00 188,100.00
CHILD QUANTITY SOLD       100,000.00     117,000.00     136,500.00 128,700.00 128,700.00 128,700.00
SENIOR QUANTITY SOLD       50,000.00      60,000.00      70,000.00 66,000.00 66,000.00 66,000.00
TOTAL QUANITITY SOLD      375,000.00     453,000.00     530,250.00 499,950.00 499,950.00 499,950.00
REVENUE                 1,925,000.00   1,906,500.00   2,562,000.00 2,668,050.00 2,920,500.00 3,172,950.00
TOTAL COSTS             2,050,000.00   1,340,000.00   1,407,000.00 1,477,350.00 1,551,217.50 1,628,778.38
FIXED COSTS               800,000.00     640,000.00     672,000.00 705,600.00 740,880.00 777,924.00
VARIABLE COSTS          1,000,000.00     700,000.00     735,000.00 771,750.00 810,337.50 850,854.38
STARTUP COSTS             250,000.00              0              0            0            0            0
TAX RATE                           0           0.35           0.45         0.45         0.45         0.45
NET INCOME BEFORE TAX              0     793,000.00   1,526,175.00 1,565,662.50 1,744,245.00 1,919,134.13
TAXES                              0     277,550.00     686,778.75 704,548.13 784,910.25 863,610.36
NET INCOME AFTER TAX               0     515,450.00     839,396.25 861,114.38 959,334.75 1,055,523.77
CONCESSION SALES          750,000.00   1,132,500.00   1,458,187.50 1,399,860.00 1,399,860.00 1,399,860.00
CONCESSION CGS            375,000.00     906,000.00   1,087,012.50 1,024,897.50 1,024,897.50 1,024,897.50
CONCESSION REVENUE        375,000.00     226,500.00     371,175.00 374,962.50 374,962.50 374,962.50

                                         CHEN ARENA
                        IFPS: What If
               Student Ticket Prices Were
                         $ 2.00:
                        Year 1           Year 2           Year 3           Year 4           Total            Percent
STUDENT PRICE                       2                2                2                2                2                0
ADULT PRICE                         6                7                8                9               7.5               0
CHILD PRICE                         3               3.5               4               4.5             3.75               0
SENIOR PRICE                        5                5                6                6               5.5               0
NUMBER OF GAMES                    25               30               35               33              123                0
STUDENT QUANTITY SOLD        75,000.00       105,000.00       124,250.00       117,150.00       421,400.00             4.47
ADULT QUANTITY SOLD         150,000.00       171,000.00       199,500.00       188,100.00       708,600.00             7.51
CHILD QUANTITY SOLD         100,000.00       117,000.00       136,500.00       128,700.00       482,200.00             5.11
SENIOR QUANTITY SOLD         50,000.00        60,000.00        70,000.00        66,000.00       246,000.00             2.61
TOTAL QUANITITY SOLD        375,000.00       453,000.00       530,250.00       499,950.00     1,858,200.00         19.71
REVENUE                   1,600,000.00     2,116,500.00     2,810,500.00     2,902,350.00     9,429,350.00               0
TOTAL COSTS               1,800,000.00     1,340,000.00     1,407,000.00     1,477,350.00     6,024,350.00         63.89
FIXED COSTS                 800,000.00       640,000.00       672,000.00       705,600.00     2,817,600.00         29.88
VARIABLE COSTS            1,000,000.00       700,000.00       735,000.00       771,750.00     3,206,750.00         34.01
STARTUP COSTS               250,000.00               0                0                0        250,000.00               0
TAX RATE                            0               0.4             0.45             0.45             0.33               0
NET INCOME BEFORE TAX       -75,000.00     1,003,000.00     1,774,675.00     1,799,962.50     4,502,637.50               0
TAXES                               0        401,200.00       798,603.75       809,983.13     2,009,786.88               0
NET INCOME AFTER TAX        -75,000.00       601,800.00       976,071.25       989,979.38     2,492,850.63               0
CONCESSION SALES            750,000.00     1,132,500.00     1,458,187.50     1,399,860.00     4,740,547.50               0
CONCESSION CGS              375,000.00       906,000.00     1,087,012.50     1,024,897.50     3,392,910.00               0
CONCESSION REVENUE          375,000.00       226,500.00       371,175.00       374,962.50     1,347,637.50               0


                                           CHEN ARENA
    Total Quantity Sold



                                       STUDENTQUANTITY
         200000                        SOLD
         150000                        ADULTQUANTITY
Quantity                               SOLD
         100000
          50000                        CHILD QUANTITY
                                       SOLD
              0
                  1   2     3 4        SENIOR QUANTITY
                                       SOLD
                           Years


                          CHEN ARENA
Costs For Chen
    Arena


           4.0%           FIXED
                          COSTS
44.9%
                          VARIABLE
                  51.1%   COSTS

                          STARTUP
                          COSTS
        TOTAL




            CHEN ARENA
        Financial Base
           Model:
WIDTH 80,23,10,2
COLUMNS 1-5
\\
CENTER NEW GONZAGA ARENA FINANCE REPORT
CENTER DATE OF REPORT: *DATE*
\
\TIME OF GENERATION: *TIME*
\           ---*PAGE*---
SPACE 2
COLUMNS TITLES YEAR 1, YEAR 2, YEAR 3, YEAR 4, TOTAL
*
\TICKET PRICES
UNDERLINE=
STUDENT PRICE, ADULT PRICE, CHILD PRICE, SENIOR PRICE
UNDERLINE
SPACE 2
NUMBER OF GAMES
UNDERLINE
\QUANTITY SOLD
UNDERLINE=
STUDENT QUANTITY SOLD, ADULT QUANTITY SOLD, CHILD QUANTITY
SOLD,'
SENIOR QUANTITY SOLD
UNDERLINE=
SPACE 2
REVENUE, TOTAL COSTS, FIXED COSTS, VARIABLE COSTS,'
STARTUP COSTS, TAX RATE, TAXES, NIBT:, NIAT:
SPACE 2
\CONCESSION
UNDERLINE=
CONCESSION SALES, CONCESSION CGS, CONCESSION REVENUE

                     CHEN ARENA
         Financial Model:
            Default Solution
                     Year 1 Year 2 Year 3 Year 4
STUDENT QUANTITY SOLD 75,000.00 105,000.00 117,150.00 117,150.00
ADULT QUANTITY SOLD 150,000.00 171,000.00 188,100.00 188,100.00
CHILD QUANTITY SOLD 100,000.00 117,000.00 128,700.00 128,700.00
SENIOR QUANTITY SOLD 50,000.00 60,000.00 66,000.00 66,000.00
TOTAL QUANITITY SOLD 375,000.00 453,000.00 499,950.00 499,950.00
NUMBER OF GAMES              25         30         33         33
MEAN OF SQS          103,575.00 103,575.00 103,575.00 103,575.00
MEAN1 OF SQS          90,000.00 99,050.00 113,100.00 117,150.00
MEAN2 OF SQS          99,050.00 103,575.00 113,100.00 117,150.00
MEDIAN OF SQS        111,075.00 111,075.00 111,075.00 111,075.00
MEDIAN1 OF SQS        90,000.00 105,000.00 117,150.00 117,150.00
MEDIAN2 OF SQS       105,000.00 111,075.00 117,150.00 117,150.00
STDDEV OF SQS         19,892.40 19,892.40 19,892.40 19,892.40
STDDEV1 OF SQS        21,213.20 21,695.79 7,014.81             0
STDDEV2 OF SQS        21,695.79 19,892.40 7,014.81             0
                         CHEN ARENA
   Chen Arena
Financial Analysis



  Microsoft Excel:



       CHEN ARENA
                        Excel: Base
                        Spreadsheet     The Chen Arena
                          Year 1          Year 2           Year 3          Year 4          Total
        Ticket Price

Student Price                  $0.00            $0.00           $0.00           $0.00              $0.00
Adult Price                    $6.00            $7.00           $8.00           $9.00              $7.50
Child Price                    $3.00            $3.50           $4.00           $4.50              $3.75
Senior Price                   $5.00            $5.00           $6.00           $6.00              $5.50

Number Of Games                25.00            30.00           35.00           33.00          123.00

       Quantity Sold

Student Quantity Sold       75000.00       105000.00        124250.00       117150.00       421400.00
Adult Quantity Sold        150000.00       171000.00        199500.00       188100.00       708600.00
Child Quantity Sold        100000.00       117000.00        136500.00       128700.00       482200.00
Senior Quantity Sold        50000.00        60000.00         70000.00        66000.00       246000.00
Total Quantity Sold        375000.00       453000.00        530250.00       499950.00      1858200.00

Revenue                 $1,450,000.00   $1,906,500.00    $2,562,000.00   $2,668,050.00   $8,586,550.00

           Cost

Total Cost              $1,800,000.00   $1,340,000.00    $1,407,000.00   $1,477,350.00   $6,024,350.00
Fixed Cost                $800,000.00     $640,000.00      $672,000.00     $705,600.00   $2,817,600.00
Varible Cost            $1,000,000.00     $700,000.00      $735,000.00     $771,750.00   $3,206,750.00
Start-Up Cost             $250,000.00           $0.00            $0.00           $0.00     $250,000.00

           Taxes

Tax Rate                         0.00            0.35             0.45            0.45            0.31
Net Income Before Tax    -$225,000.00     $793,000.00    $1,526,175.00   $1,565,662.50   $3,659,837.50
Taxes                           $0.00     $277,550.00      $686,778.75     $704,548.13   $1,668,876.88
Net Income After Tax     -$225,000.00     $515,450.00      $839,396.25     $861,114.38   $1,990,960.63

        Concession

Concession Sales         $750,000.00    $1,132,500.00    $1,458,187.50   $1,399,860.00   $4,740,547.50
Concession CGS           $375,000.00      $906,000.00    $1,087,012.50   $1,024,897.50   $3,392,910.00
Concession Revenue       $375,000.00      $226,500.00      $371,175.00     $374,962.50   $1,347,637.50


                                        CHEN ARENA
                       Excel: Goal Seek
                                           The Che n Are na
                              Ye ar 1         Ye ar 2         Ye ar 3       Ye ar 4        Total
      Tick e t Price


Stude nt Price                     $6.33           $0.00           $0.00         $0.00         $1.58
Adult Price                        $6.00           $7.00           $8.00         $9.00         $7.50
Child Price                        $3.00           $3.50           $4.00         $4.50         $3.75
Se nior Price                      $5.00           $5.00           $6.00         $6.00         $5.50


Num be r Of Gam e s                25.00           30.00           35.00         33.00       123.00


     Quantity Sold


Stude nt Quantity Sold         75000.00       105000.00       124250.00     117150.00     421400.00
Adult Quantity Sold           150000.00       171000.00       199500.00     188100.00     708600.00
Child Quantity Sold           100000.00       117000.00       136500.00     128700.00     482200.00
Se nior Quantity Sold          50000.00        60000.00        70000.00      66000.00     246000.00
Total Quantity Sold           375000.00       453000.00       530250.00     499950.00    1858200.00


Re ve nue                  $1,925,000.50 $1,906,500.00 $2,562,000.00 $2,668,050.00 $9,061,550.50


            Cos t


Total Cos t                $2,050,000.00 $1,340,000.00 $1,407,000.00 $1,477,350.00 $6,274,350.00
Fixe d Cos t                $800,000.00     $640,000.00    $672,000.00     $705,600.00 $2,817,600.00
Varible Cos t              $1,000,000.00    $700,000.00    $735,000.00     $771,750.00 $3,206,750.00
Start-Up Cos t              $250,000.00            $0.00           $0.00         $0.00   $250,000.00


            Taxe s


Tax Rate                            0.00            0.35            0.45          0.45             0.31
Ne t Incom e Be fore Tax           $0.50    $793,000.00 $1,526,175.00 $1,565,662.50 $3,884,838.00
Taxe s                             $0.00    $277,550.00    $686,778.75     $704,548.13 $1,668,876.88
Ne t Incom e Afte r Tax            $0.50    $515,450.00    $839,396.25     $861,114.38 $2,215,961.13


      Conce s s ion


Conce s s ion Sale s        $750,000.00 $1,132,500.00 $1,458,187.50 $1,399,860.00 $4,740,547.50
Conce s s ion CGS           $375,000.00     $906,000.00 $1,087,012.50 $1,024,897.50 $3,392,910.00
Conce s s ion Re ve nue     $375,000.00     $226,500.00    $371,175.00     $374,962.50 $1,347,637.50

                                           CHEN ARENA
                        Excel: What-If
                We Charged Students $ 2.00

                        Year 1           Year 2           Year 3           Year 4           Total            Percent
STUDENT PRICE                       2                2                2                2                2              0
ADULT PRICE                         6                7                8                9               7.5             0
CHILD PRICE                         3               3.5               4               4.5             3.75             0
SENIOR PRICE                        5                5                6                6               5.5             0
NUMBER OF GAMES                    25               30               35               33              123              0
STUDENT QUANTITY SOLD        75,000.00       105,000.00       124,250.00       117,150.00       421,400.00         4.47
ADULT QUANTITY SOLD         150,000.00       171,000.00       199,500.00       188,100.00       708,600.00         7.51
CHILD QUANTITY SOLD         100,000.00       117,000.00       136,500.00       128,700.00       482,200.00         5.11
SENIOR QUANTITY SOLD         50,000.00        60,000.00        70,000.00        66,000.00       246,000.00         2.61
TOTAL QUANITITY SOLD        375,000.00       453,000.00       530,250.00       499,950.00     1,858,200.00        19.71
REVENUE                   1,600,000.00     2,116,500.00     2,810,500.00     2,902,350.00     9,429,350.00             0
TOTAL COSTS               1,800,000.00     1,340,000.00     1,407,000.00     1,477,350.00     6,024,350.00        63.89
FIXED COSTS                 800,000.00       640,000.00       672,000.00       705,600.00     2,817,600.00        29.88
VARIABLE COSTS            1,000,000.00       700,000.00       735,000.00       771,750.00     3,206,750.00        34.01
STARTUP COSTS               250,000.00               0                0                0        250,000.00             0
TAX RATE                            0               0.4             0.45             0.45             0.33             0
NET INCOME BEFORE TAX       -75,000.00     1,003,000.00     1,774,675.00     1,799,962.50     4,502,637.50             0
TAXES                               0        401,200.00       798,603.75       809,983.13     2,009,786.88             0
NET INCOME AFTER TAX        -75,000.00       601,800.00       976,071.25       989,979.38     2,492,850.63             0
CONCESSION SALES            750,000.00     1,132,500.00     1,458,187.50     1,399,860.00     4,740,547.50             0
CONCESSION CGS              375,000.00       906,000.00     1,087,012.50     1,024,897.50     3,392,910.00             0
CONCESSION REVENUE          375,000.00       226,500.00       371,175.00       374,962.50     1,347,637.50             0




                                           CHEN ARENA
  Excel: Graph 1

      Concession


25%




                            50%

25%

       Concession Sales
       Concession CGS
       Concession Revenue
         CHEN ARENA
Excel: Graph 2

                         Taxes
1600000.00
1400000.00
1200000.00
                                      Tax Rate
1000000.00
 800000.00                            Net Income
 600000.00                            Before Tax
 400000.00                            Taxes
 200000.00
      0.00                            Net Income
-200000.00                            After Tax
-400000.00
             1   2        3       4

                     CHEN ARENA
                  Excel: Chart 3
                          Ticket Prices

         $10.00

          $9.00

          $8.00

          $7.00

          $6.00                                Student Price
Prices




          $5.00                                Adult Price
          $4.00                                Child Price
          $3.00                                Senior Price
          $2.00

          $1.00

          $0.00
                  1   2      3         4   5
                           Years
                          CHEN ARENA
                                Pictorial
student price      student q. sold
adult price        adult q. sold        revenue
child price        child q. sold
senior price       senior q. sold

                                                     tax rate
                                        net income              net income
fixed costs                             before tax              after tax
variable costs     Total Cost                        taxes
start-up costs

concession sales
                   concession revenue
concession cgs

                                     CHEN ARENA
        Conclusion

 From our in-depth study of this
  new Chen Arena, we have
  found that this would be a
  profitable investment. Not just
  for the University but also for
  the community of Spokane.
 We also feel that with this new
  investment we would be able to
  host many larger events, for
  example the NCAA
  Tournament!
           –    GO ZAGS!!
               CHEN ARENA
Thank You!!!




    CHEN ARENA

				
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posted:3/3/2012
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