MIS 235

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CHEN ARENA

• MIS 235
• GROUP 7
• SPRING 1999

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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!

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Financial Analysts

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

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Cover Letter
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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.

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Goals and Objectives

• Profitable
• Increase Community Involvement
• Increase Publicity
• Host Larger Events NCAA Tournament
• Lower Ticket Prices By Increasing Sales

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Financial Concerns

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

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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.

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Variables

• Net Income Before Tax
• Net Income After Tax
• Concession Sales
• Total Cost
• Concession COGS
• Fixed Cost
• Tax Rate
• Variable Cost

• Ticket Price
• Student
• Adult
• Child (12 and Under)
• Senior (65 and Over)
• Total Quantity Sold
• Revenue
• Number of Games
• Taxes

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CHEN ARENA

• Visual IFPS/PLUS

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CHEN BASE MODEL

• COLUMNS 1..4, TOTAL
• SPSTUDENT PRICE0
• APADULT PRICE6, PREVIOUS 1
• CPCHILD PRICE3, PREVIOUS .50
• SEPSENIOR PRICE 5 FOR 2, 6
• NOGNUMBER OF GAMES 25, PREVIOUS 5 FOR 2, 33
• SQSSTUDENT QUANTITY SOLD3000 NOG, 3500NOG,
  3550NOG
• AQSADULT QUANTITY SOLD6000NOG, 5700NOG
• CQSCHILD QUANTITY SOLD4000NOG, 3900NOG
• SEQSSENIOR QUANTITY SOLD2000NOG
• TQSTOTAL QUANITITY SOLDSQSAQSCQSSEQS
• REVENUE(SPSQS) (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

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IFPS Base Model Default Solution
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IFPS Customized Report
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Customized Report
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IFPS Goal-SeekBreak Even Point
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IFPS What IfStudent Ticket Prices Were 2.00
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Total Quantity Sold
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Costs For Chen Arena
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Financial Base Model
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Financial Model Default Solution
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Chen Arena Financial Analysis

• Microsoft Excel

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Excel Base Spreadsheet
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Excel Goal Seek
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Excel What-IfWe Charged Students 2.00
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Excel Graph 1
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Excel Graph 2
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Excel Chart 3
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Pictorial
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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!!

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Thank You!!!