Assessment Task 2: Individual Assignment
Assessment of the assignment is based on the adequacy and accuracy of the submitted assignment.
For all written work students must ensure that they submit their own original work. Any act of plagiarism will be severely penalised.
Students must:
• fully reference the source(s) of all material, even if you have re-expressed the ideas, facts or descriptions;
• acknowledge all direct quotations; and
• Not submit work that has been researched and written by another person.
Your work will be assessed in terms of the following criteria:
1. Effectiveness of communication – i.e. readability, legibility, neatness, completeness and presentation
2. Demonstrated understanding of the subject matter covered – This will be evidenced by your ability of submitted answers.
Certain aspects of these questions may require some assumptions to be made. Therefore, different answers are very acceptable. For ease of marking please specify these if you think it clarifies your decisions and responses.
Your assignment must be submitted into the Turnitin drop box on LMS.
THH3113 COST AND PERFORMANCE MANAGEMENT FOR TOURISM AND HOSPITALITY
(2021 Sem 3) – Due Date: 9th January 2022 Sunday 11:55pm
Analysis and Report (20 marks. Approximately 1000 – 1250 words)
The DOSM of Purple Events is asking you the revenue manager to work on the pricing and cost analysis for the yearly Australia tattoo event in Melbourne. As the revenue manager of Purple Events Australia Pvt Ltd, events management company based in Melbourne, you are asked by your DOSM to critically evaluate the following and report on the same by categorizing costs and critically appraise & evaluate cost drivers with emphasis on cost drivers in relation to which offer is best acceptable for the business.
The event is a trade show to be held in Melbourne on the 20th of February. The event is all about
One massive day of tattoos, art and entertainment, the venue chosen in Melbourne Exhibition Centre. International tattoo artists together under one roof to showcase their work. Visitors will have the chance to meet their next (or first!) artist, research the latest trends, and even treat themselves to a tattoo on the spot.
They are expecting: 1500 Visitors. These are the following information that Purples DOSM has researched and Budgeted for the 2022 event
2022 BUDGETED EXPENSES FOR THE TATOO EVENT
EXPECTED VISITORS 1500
Category 2022
Budgeted
EXPENES coments
Venue related costs FRIDAY 2O22
Location rental cost $3200 Onetime expense
Event staff wages $4,800.00 they are all rostered staff. None of them reworking full time
Decoration’s cost $1,200.00 no changes from last year expenses
Additional signage cost $1,000.00 depends on the stalls installed
Rock band performers fee $1,000.00 There are no changes in the band. This rock band traditionally perform in this event every year
Social media costs
Twitter $200.00 depending on number of posts and states. As covid restrictions are easing they ae expecting to open for other states as well
Facebook $300.00
Advertising
advertisement pamphlets Printing cost $300.00 they are printing minimum 150000 pamphlets
The DOSM wants you to analyse and categorize costs according to their behaviour differentiate cost related to pricing and cost control techniques according to the various cost drivers and behaviours the costs that can be controlled and reduced to make more yield by not compromising on service. The RM is required to calculate the total expense and determine the ticket entry selling price for the event. The DOSM requires standard pricing to be calculated with 150% profit on the cost (expenses).
Required:
1. Cost Analysis: (Here you must differentiate cost as fixed cost / variable cost and state the reason why they are fixed / variable) (750 – 1000words) (7.5 Marks)
2. Differential Pricing: The DOSM requires you to determine differential pricing for the different category of people that will be visiting the event in February
Students price to be calculated with 50% profit on cost; adults full pricing with 100% profit ; kids pricing to be calculated with 25% profit on cost ; senior citizens pricing to be calculated at 37.5% and standard pricing to be calculated with 150% profit on the cost (expenses) (7.5 marks)
3. Report Presentation with no errors is awarded (5 marks)
(you can use Microsoft excel to work on your assignment calculation part and import it to Microsoft word when writing your report. Please use proper referencing where needed using APA style)
Further Instructions:
1. Your assignment must be submitted no later than the Sunday ending week 6 ( 11:59 PM.) Assessment tasks submitted after the due date, without prior approval or arrangement, will be penalised by ten percent. Requests for extension of time must be made with your lecturer and based on Special Consideration guidelines using the special consideration form.
2. It is preferred you do your assignment using Microsoft word
3. This assignment must be handed in for successful completion of the course and will count as 30 marks towards the final mark.
4. All assignments are to be uploaded to the Turnitin link
Your report should be in this format:
Contents Page:
A. Report Overview (100 – 150 words)
B. Body of the Report (total 20 Marks) (body of the report should comprise of the following)
1. Cost Analysis: (Here you must differentiate cost as fixed cost / variable cost and state the reason why they are fixed / variable) (750 – 1000words) (7.5 Marks)
2. Differential Pricing: The DOSM requires you to determine differential pricing for the different category of people that will be visiting the event in February
Students price to be calculated with 50% profit on cost; adults full pricing with 100% profit ; kids pricing to be calculated with 25% profit on cost ; senior citizens pricing to be calculated at 37.5% and standard pricing to be calculated with 150% profit on the cost (expenses) (7.5 marks)
3. Report Presentation and references with no errors is awarded (5 marks)
(You can use Microsoft excel to work on your assignment calculation part and import it to Microsoft word when writing your report. Please use proper referencing where needed using APA style)
