Let’s Throw a Business Party – Assignment
Assignment is to project sales, research and estimate expenses and then calculate your profit or
Develop and build an income statement, also known as profit/Loss statement.
a. First step is to determine your projected revenue from the sale of tickets (if you want to
include extra sales like food, tee shirts, ear plugs, etc. you can)-
For ticket revenues only the calculation is # tickets sold x price per ticket
Break even analysis should be used for analysis.
# tickets to break even = ———————————————–
Price per ticket – Variable Expenses
b. Next step is determining your major expenses.
You will refer to variable expenses as COST OF GOODS SOLD
You will refer to fixed expenses as OPERATING EXPENSES
c. Take your REVENUE and subtract ALL EXPENSES
If there is money remaining, you have a profit. If you have no money left over or
have a deficit, you are LOSING money. You may need to consider raising the ticket
price or lowering expenses. What will the effect of raising or lowering the ticket
cost have on the attendance?
For purposes of this assignment, you will need to research actual expenses for the party. You will
need to determine ACTUAL suppliers you can purchase from and actual estimated costs based
on your research.
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