Business Math
tlponr
wk_2_-_case_study_problems.xlsx5-2_4
| Artist's Performance Rights | ||||
| Background Information: Performance rights organizations track and pay royalties to song writers, publishers, and musicians for use of their works. Royalties are paid to an artist based on a complicated credit system using a formula with weights assigned for a variety of factors, including the following: • Use: weight based on the type of song or performance (theme, underscore, or promotional). • Licensee: weight based on the station’s licensing fee, which is determined by the size of the licensee’s markets and number of stations carrying its broadcast signal. • Time-of-Day: weight assigned according to whether the performances are broadcast during peak viewing or listening times. • Follow-the-Dollar: factor based on the medium from which the money came (radio play, live performance, TV performance, and so on). • General Licensing Allocation: based on fees collected from bars, hotels, and other non-broadcast licensees. These amounts are multiplied together, and then a radio feature premium is added, if applicable, to arrive at a total number of credits for the particular artist, or his or her credit total for a particular reporting period. Royalties are usually split among the writer, the publisher, and possibly a performer if the writer does not perform his or her own work. The proportion that each party receives is called the share value. All of the money collected for the reporting period divided by the total number of credits for all performers is called the credit value. An artist who wants to figure out what money he or she will receive for a period has to multiply the three factors; credit total, share value, and credit value | ||||
| 4. Ziam is considering an offer to perform his own songs on a CD to be titled “Waiting There.” In the past, he has written but not performed his music. If Ziam’s royalty is 0.12 of the suggested retail price of $15.00, but 0.25 of the retail price is deducted for packaging before Ziam’s royalty is calculated, how much will he receive for sale of the CD? Write your answer in the form of an equation and solve it. | ||||
| Use the equation below and show your work in this cell to solve for the royalty payment. Manual Equation: R = (PD - 0.25 * R%)(0.12) | ||||
| Use the marked cells below to fill in the appropriate numbers for the variables (CT, SV, CV) to check your answer for the royalty payment. | ||||
| Variables Used | RP= | $1.00 | ||
| PD= | 1.00 | |||
| R%= | 1.00 | |||
| Excel Formula | R= | $0.00 | ||
| Use the cursor to highlight the yellow cell and look at the area above the column headings to see the background formula. You should see the formula, =(E35-E36*(E35))*(E37). By changing the RP, PD, or R% values in the Microsoft® Excel® reference formula, you can experiment with various what-if scenarios that will change the R total. Try it. | ||||
| Explain Case Study Successes & Issues: | ||||
| Successes: | ||||
| Issues: | ||||
6-2_2
| Customer Relationship Management | |||||
| Background Information: Minh Phan is going over the numbers one more time. He is about to make the most important sales presentation of his young career, and wants everything to be right. His prospective client, Media Systems, Inc., is one of the country’s leading media and communications organizations. Media Systems’ primary challenge is how to effectively manage its diverse customer base. The company has 70,000 publication subscribers, 58,000 advertisers, 30,000 telephone services customers, and 18,000 ISP (Internet service provider) customers. The company had little information about who its customers truly were, which products they were using, and how satisfied they were with the service they received. That’s where Minh and his company, Customer Solution Technologies, LLC, came in. Through the use of customer relationship management software, Minh believed Media Systems would be able to substantially improve its ability to cross-sell and up-sell multiple media and communications services to customers, while substantially reducing customer complaints. | |||||
| 2. Minh’s data shows that on average only 4.6% of customers were purchasing complementary services available within Media Systems. By using his company’s services, Minh was projecting that these percentages would triple across all user groups within 1 year. a) How many customers would that equate to in total for each group? b) What would be the difference compared to current levels? | |||||
| (Show your work in this cell to solve for the total number of customers in each group and the difference compared to current levels.) | |||||
| Use the cells below to fill in the appropriate numbers for the variables (PS, AD, TC, ISP, current purchasing %, projected multiple factor, and % difference) to check your answers. | |||||
| Variables Used | PS= | 1 | |||
| AD= | 1 | ||||
| TC= | 1 | ||||
| ISP= | 1 | ||||
| Current Purchasing % | 1.00% | ||||
| Projected multiple factor | 1.00 | ||||
| % Difference | 1.00% | ||||
| Excel Formulas | Part A | Part B | |||
| PS= | $0.01 | $0.01 | |||
| AD= | $0.01 | $0.01 | |||
| TC= | $0.01 | $0.01 | |||
| ISP= | $0.01 | $0.01 | |||
| Use the cursor to highlight the yellow cells and look at the area above the column headings to see the background formulas. What is great about a Microsoft®Excel® reference formula is you can change any of the variables and the cells with formulas will change; thus, allowing many what-if scenarios. Try it. | |||||
| Explain Case Study Successes & Issues: | |||||
| Successes: | |||||
| Issues: | |||||
