Event specific revenue versus costs

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SUMMARY

The discussion centers on formulating an equation to analyze the relationship between revenue and costs for a specific event hosted by a company. The revenue is calculated based on the number of meetings chosen by 39 companies, with defined costs for 5 meeting options ranging from 1250 to 5000 currencies. Costs include a constant base salary for six employees plus a 10% cut from the meeting packages sold. The goal is to establish how changes in the number of companies (n) affect both revenue and costs.

PREREQUISITES
  • Understanding of basic algebra and equations
  • Knowledge of revenue and cost analysis
  • Familiarity with percentage calculations
  • Experience with financial modeling
NEXT STEPS
  • Research how to create financial models using Excel or Google Sheets
  • Learn about break-even analysis and its applications
  • Explore correlation coefficients to understand variable relationships
  • Study the impact of fixed versus variable costs in event planning
USEFUL FOR

This discussion is beneficial for event planners, financial analysts, and business managers looking to optimize revenue and cost structures for events.

Incredible1
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Hi there!

I have a problem that I cannot solve and I really need your help. This problem is connected to a single event held by an unnamed company and I am asking you to help me form an equation. Basically, the simple equation would be revenue-costs=profit/loss. I need to form an equation that indicates how a single variable affects both revenue and costs and preferably find their correlation OR how the change in the variable affects both revenue and costs. I am simply not smart enough to form one. :confused:

The revenue part consists of total amount money spent/event, which equals the number of meetings in the event for company n multiplied with cost of each of the meetings for company n. There are 5 meeting options that a company can choose from:

1. 5 meetings = 1250 currencies
2. 10 meetings= 2400 currencies
3. 15 meetings= 3450 currencies
4. 20 meetings= 4400 currencies
5. 25 meetings= 5000 currencies

The total number of companies, n, for the event is 39.

The costs part consists of base salary cost for six employees which is constant (same for each of the six employees) in addition to a 10% provisional cut for each of the above-mentioned meeting-packages sold to customers.

I need something that indicates the change in both revenue and costs when n is changed and in which relation they change.

I tried to be as clear as I can, but as you can probably see, I am not the sharpest tool in the shed. I tried forming the equation myself, but after two hours and some progress, I decided to try and find someone smarter than me.

If you need more explanation or I was not clear enough, I am perfectly fine with trying to explain further. Thank you so much in advance! :)
 
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Well, read your post 3 times, got nothing but a splitting headache...

Perhaps you could ask someone, like a local high school math teacher,
to help you present your problem clearly...

You owe me 6 Tylenols :)
 

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