(answered) – 1 The Warsaw Air Show A group of community enthusiasts think thatDescriptionSolution downloadThe QuestionHello,I have attached the following questions I need assistant with. I have attached the spreadsheet.This major assignment assesses your knowledge of cost behaviors and relationships and the ability to apply essential decision making tools to a factual business situation. This case study?will require you to analyze the facts of a given business situation, identify the tools necessary to address operating decisions, and make recommendations to improve performance. Chapters 1-8 will be covered in this case, with an emphasis on 5-8. Please answer all questions in the case. Please show all calculations in the same format as used in the exercises of Minor 3.Was it necessary to formulate objectives for the air show? Why or why not?The year one surplus was relatively small, though it was larger than the breakeven target for year one. Would your assessment of year one have been different had the result been a small deficit? Why or why not?How do air show expenditures relate to ticket sales for the air show? What costs would you label as variable, as fixed, or as mixed?Assume you are part of the planning committee for next year?s air show, what changes would you recommend? Why?Planning for next year assume the following: A) Fixed costs will be $50,000. B) Variable costs will be 75% of parking and entry fees. C) Sponsor contributions will grow to $45,000. D) All concession profits will go to the civic group providing concessions. What will be the breakeven amount (in total) of parking and entry fees?What will be the amount (in total) of parking and entry fees to earn a profit of $10,000? To earn a profit of $25,000?What will be the percentage increase in parking and entry fees to earn a profit of $10,000? To earn a profit of $25,000? Assuming this translates into a similar percentage increase in attendance, will there be potential capacity problems if the air show grounds can only accommodate 2,000 vehicles per day and 4,000 persons per day?Prepare a budgeted income statement for next year based on the scenario sketched in part 5 above.How are expenditures in year one relevant to the decision as to whether to continue the air show in year two?1The Warsaw Air ShowA group of community enthusiasts think that an air show would be a positive event for Warsaw, Indianaand greater Kosciusko County. The goal was an annual air show that would improve with each passingyear and add value to the community. Financially, the objective was to break even in the first year andearn $10,000 in the second year. Once up and running, the goal was to earn an average of $25,000 peryear. The annual surpluses would be available to reinvest in the air show and support other communityactivities.The original group of enthusiasts added strategically to their number and formed an air show committee.The committee quickly determined that 1) appearance fees would be necessary to attract desirableaircraft, 2) parking and entry fees would be insufficient to cover the air show costs, and 3) thus, fundswould have to be raised through sponsorships. Sponsorship levels were set at $100, $1,000, $2,000 and$5,000.A local civic group agreed to provide concessions. Profits from the concessions will be split evenlybetween the air show and civic group.The air show will take place on the third weekend in August, starting on Friday evening and ending onSunday afternoon. Entry fees are $10 for adults and $5 for children 12-and-younger. Parking fees are $5per vehicle.During the first year of the air show attendance and parking were as follows:FridaySaturdaySundayTotalVehicles Parked8001,7506253,175Adult Admissions1,0002,4507754,225Children Admissions2251,1001801,505Below are re
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