The Marketing Club at Southern University Recently Held an End-Of-Year

Essay

The Marketing Club at Southern University recently held an end-of-year dinner and swim party, which the treasurer declared to be a financial success. "Attendance was an all-time high, 60 members, and the results were much better than expected." The treasurer presented the following performance report at the executive board's June meeting:
The budget was based on the assumptions that follow.
• Forty-five members would attend at a fixed ticket price of $35.
• Food and beverage costs were anticipated to be $15 and $7 per attendee, respectively.
• A disc jockey was hired via a written contract at $50 per hour.
Required:
A. Briefly evaluate the meaningfulness of the treasurer's performance report.
B. Prepare a performance report by using flexible budgeting and determine whether the end-of-year party was as successful as originally reported.
C. Based on your answer in requirement "B," present a possible explanation for the variances in revenue, food costs, beverage costs, and the disc jockey.