Gemini Theatre (GT)
GT is a private limited company fully owned by the Gemini family. It owns a small theatre. This building is used to show live stage performances. Some of the performances are created by GT and some are created by visiting groups who rent the theatre. Table 2.1 shows the planned performances for January 2021.
Table 2.1: Planned performances for January 2021
Name of performance | Created by | Number of performances | Ticket price | Percentage of tickets sold |
A Summer Dream | Visiting group | 9 | $40 | 100% |
Wise Owl | GT | 14 | $15 | 60% |
La Poeme Ballet | GT | 5 | $20 | 40% |
GT gains all the revenue from performances created by GT. Visiting groups must pay 50% of their total ticket revenue to GT. The theatre has a maximum of 250 tickets that can be sold for each performance.
GT uses cost-based pricing to set each ticket price for its own performances. Each performance makes a profit but the company often experiences cash flow problems.
GT needs to recruit a new Theatre Manager. The person hired will have many duties, including the responsibility for all of GT’s administration as well as some accounting. The Directors are considering two people who were both recently interviewed. Table 2.2 contains information gained from the interview process.
Table 2.2: Information gained from the interview process
Nick | Portia |
Three years working for a similar theatre business A Levels in Business, Art and Chinese Very organised and efficient No management experience Wants to move overseas in the future
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