ACCT6001 Case Study: Financial Analysis of a Formula 1 Race Event

This case study analyzes the financial performance of a Formula 1 race event. It begins with a detailed breakdown of ticket sales, including purchase dates, customer details, ticket types, and amounts paid. The data is then summarized to show total revenue from each ticket type and country. The analysis extends to the income and expenses of the event, providing estimates and actual figures for various categories such as registration, sales, and sponsorships. The study also includes a marketing strategy section, discussing both organic and paid marketing channels, with a focus on Facebook and remarketing techniques. Finally, the document calculates the total income, expenses, and profit, offering recommendations for increasing revenue, such as adjusting ticket prices. The analysis is presented using Excel spreadsheets, as required by the assignment brief, and includes references to relevant marketing strategies. This comprehensive analysis provides a practical application of accounting principles within the context of a large-scale event.

ACCOUNTING INFORMATION SYSTEM 1
ACCOUNTING
INFORMATION SYSTEM

ACCOUNTING INFORMATION SYSTEM 2
Part 1:
Purch
ase
date
First
nam
e
Surn
ame
Street
Address
Co
unt
ry
Date
of
birth
Mobile
numbe
r Ticket type
Amo
unt
paid
06.08.
2019 Anna
Hartl
y
XYZ
Lane, 123
street
Aus
trali
a
05.01.
2000 123456 4 Day Pass 210.00
09.08.
2019
Jenni
fer
Cruis
e
XYZ
Lane, 123
street
US
A
06.12.
2000 256584 Hospitality shared
5,
195.00
05.08.
2019
Wing
et Prio
XYZ
Lane, 123
street
Bra
zil
07.09.
2001 895623
General
admission 175.00
05.08.
2019
May
o Lata
XYZ
Lane, 123
street
Cub
a
08.09.
1990 258745 4 Day Pass 205.00
06.08.
2019
Debb
ie
Sher
gill
XYZ
Lane, 123
street
Indi
a
10.12.
1985
895478
9 Club 15 99.00
09.08.
2019
Akba
r Sen
XYZ
Lane, 123
street
Jord
an
22.05.
2001
789456
5 Hospitality shared
4,
675.00
09.08.
2019
Dian
a
Haya
t
XYZ
Lane, 123
street
Ken
ya
08.12.
1995
782365
2
Chicane Pavilion
Lower
SATURDAY 30.00
05.08.
2019
Perc
o
Wins
let
XYZ
Lane, 123
street
Aus
trali
a
17.08.
1996
897456
5
General
admission 75.00
05.08.
2019 Kate
Dani
el
XYZ
Lane, 123
street
Lib
ya
18.05.
1997 451236 4 Day Pass 230.00
05.08.
2019
Ryan Josh
ua
XYZ
Lane, 123
Aus
trali
18.09.
2002
258963 General
admission 89.00

ACCOUNTING INFORMATION SYSTEM 3
street a
05.08.
2019 Liam John
XYZ
Lane, 123
street
Aus
trali
a
07.05.
2000 784596 Hospitality shared
5,
195.00
05.08.
2019
Nora
h
Alex
ander
XYZ
Lane, 123
street
Aus
trali
a
07.09.
2001 123568 Club 15 99.00
05.08.
2019
Benj
amin
Eide
n
XYZ
Lane, 123
street
US
A
15.02.
1992 589674 Club 15 99.00
10.08.
2019 Lexy
Chris
tophe
r
XYZ
Lane, 123
street
Lib
ya
15.09.
2003 258741 4 Day Pass 175.00
09.08.
2019
Willi
an
Jame
s
XYZ
Lane, 123
street
US
A
08.07.
2001 147852
Chicane Pavilion
Lower SUNDAY 205.00
08.08.
2019
Jame
s
Wing
et
XYZ
Lane, 123
street
US
A
08.09.
2000 789654 Hospitality shared
4,
995.00
09.08.
2019 Kyto
May
o
XYZ
Lane, 123
street
US
A
10.09.
2001 789123
Chicane Pavilion
Lower SUNDAY 105.00
10.08.
2019
Jayd
en
Josh
ua
XYZ
Lane, 123
street
US
A
18.05.
2002 789562 4 Day Pass 150.00
08.08.
2019
Etha
n Noah
XYZ
Lane, 123
street
Lib
ya
17.05.
2003 789452
Chicane Pavilion
Lower SUNDAY 56.00
06.08.
2019
Jaco
b
Etha
n
XYZ
Lane, 123
street
US
A
07.09.
2001 789654 Hospitality shared
4,
675.00
11.08.
2019
Bella Ryan XYZ
Lane, 123
US
A
15.09.
2003
852416 Chicane Pavilion
Lower SUNDAY 90.00

ACCOUNTING INFORMATION SYSTEM 4
street
06.08.
2019
Mich
ael
Madi
son
XYZ
Lane, 123
street
US
A
17.05.
2002 123478 4 Day Pass 150.00
09.08.
2019
Anth
ony
Olivi
a
XYZ
Lane, 123
street
US
A
05.01.
1989 258749
Chicane Pavilion
Lower SUNDAY 80.00
11.08.
2019
Etha
n Ava
XYZ
Lane, 123
street
US
A
06.02.
1991 748745
Chicane Pavilion
Lower SUNDAY 70.00
10.08.
2019
Isabe
lla
Isabe
lla
XYZ
Lane, 123
street
US
A
15.02.
1992 987012 Hospitality shared
2,
995.00
09.08.
2019
Emm
a
Isabe
lla
XYZ
Lane, 123
street
US
A
17.09.
2003 102385
Chicane Pavilion
Lower SUNDAY
1,
050.00
08.08.
2019
Chlo
e
Isabe
lla
XYZ
Lane, 123
street
US
A
16.08.
2003 105638 4 Day Pass 135.00
11.08.
2019
Soph
ie
Isabe
lla
XYZ
Lane, 123
street
US
A
16.05.
2008 896102
Chicane Pavilion
Lower SUNDAY 298.00
06.08.
2019 Ava
Olivi
a
XYZ
Lane, 123
street
US
A
17.04.
2000 568941 Hospitality shared
1,
050.00
09.08.
2019
Madi
son
Emil
y
XYZ
Lane, 123
street
US
A
19.07.
1990 587454 4 Day Pass 130.00
Part 2:
Ticket type Total Amount Paid in $
4 Day Pass 1,38

ACCOUNTING INFORMATION SYSTEM 5
5
Hospitality shared
28,78
0
General admission
33
9
Club 15
29
7
Chicane Pavilion Lower
SATURDAY
3
0
Chicane Pavilion Lower SUNDAY
1,95
4
Total
32,78
5
Part 3:
Sum of
Amount paid Column Labels
Row Labels
4
Day
Pass
Chicane
Pavilion
Lower
SATURDAY
Chicane
Pavilion
Lower
SUNDAY
Clu
b 15
Gener
al
admiss
ion
Hospit
ality
shared
Gran
d
Total
Australia 210 99 164
5,
195
5,
668
Brazil 175 175
Cuba 205 205
India 99 99
Jordan
4,
675
4,
675
Kenya 30 30

ACCOUNTING INFORMATION SYSTEM 6
Libya 405 56 461
USA 565 1,898 99
18,
910
21,
472
Grand Total
1,
385 30 1,954
2
97 339
28,
780
32,
785
Australi
a Brazil Cuba India Jordan Kenya Libya USA
-
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
18,000
20,000
22,000
Hospitality shared
General admission
Club 15
Chicane Pavilion Lower SUNDAY
Chicane Pavilion Lower SATURDAY
4 Day Pass
Part 4:
Income/funding
Unit
cost
Estimate
qty
Estimate
amount
Actual
qty
Actual
amount
Registration
1
54.50
200.
00 30,900.00
100
.00
15,450.
00
Sales (T shirts) 77.25
200.
00 15,450.00
110
.00
8,497.
50
Sales (Guerneys)
1
03.00
200.
00 20,600.00
209
.00
21,527.
00
Sales (Caps) 30.90
500.
00 15,450.00
539
.00
16,655.
10

ACCOUNTING INFORMATION SYSTEM 7
Sponsor (Major)
51,5
00.00
3.
00 1,54,500.00
2
.20
1,13,300.
00
Sponsor (Minor)
10,3
00.00
10.
00 1,03,000.00
13
.20
1,35,960.
00
Total 3,39,900.00
3,11,389.
60
Expenses:
Categ
ory Quantity Unit cost Amounts
Trail rental
Locati
on
52.
50 2,575.00
1,35,187
.50
Staff Event
52.
50 257.50
13,518
.75
Staff and volunteers
meals
Food
and
Drink
105.
00 51.50
5,407
.50
Canopy tent
Suppli
es
52.
50 515.00
27,037
.50
T-shirts Other
210.
00 72.10
15,141
.00
Guernsey Other
525.
00 51.50
27,037
.50
Total amount of
expense
2,23,329
.75
Part 5:

ACCOUNTING INFORMATION SYSTEM 8
Trail rental
Staff
Staff and volunteers meals
Canopy tent
T-shirts
Guernsey
- 50,000.00 100,000.00 150,000.00
Trail rental
Total Income
3,11,389.6
0
Total Expenses
2,23,329.7
5
Income
88,059.8
5
0.2
8
311,389.60
223,329.75
- 0.20 0.40 0.60 0.80 1.00 1.20
-
-
1
Income statement
Income Total Expenses

ACCOUNTING INFORMATION SYSTEM 9
Part 6:
The total amount received from the sale of each ticket comes out to be $32785.
The following table shows the tickets per country:
Sum of
Amount paid Column Labels
Row Labels
4
Day
Pass
Chicane
Pavilion
Lower
SATURDAY
Chicane
Pavilion
Lower
SUNDAY
Clu
b 15
Gener
al
admiss
ion
Hospit
ality
shared
Gran
d
Total
Australia 210 99 164
5,
195
5,
668
Brazil 175 175
Cuba 205 205
India 99 99
Jordan
4,
675
4,
675
Kenya 30 30
Libya 405 56 461
USA 565 1,898 99
18,
910
21,
472
Grand Total
1,
385 30 1,954
2
97 339
28,
780
32,
785
The following is the statement which shows the amounts of the income that are expected to
be earned by the company and the amount of the expense that the company expects to incur
in respect of these sales.
Total Income 3,11,389.6

ACCOUNTING INFORMATION SYSTEM 10
0
Total Expenses
2,23,329.7
5
Income
88,059.8
5
0.2
8
The above shows that the company would be able to earn an income of $88,059.85 which
comes out to be 28% of the total amount of the revenue which has been earned ("How to
Promote Your Race: Our Ultimate Guide", 2019).
The following is the marketing strategy that could be employed:
1. Organic marketing which comprises of the use of Facebook, twitter etc. through this,
the marketing could be done without incurring any cost. The followers could be
engaged from the Facebook page. The company must post regular feeds on the page
so that the followers are engaged and get interested in the event. Then the participant
community’s page could be created. This has been introduced recently by Facebook.
This feature would help in a better investment when it comes to the building of the
dialogue with the fans. It is very common that the directors connect with the people
that express their interest in the race on Facebook. The adoption of this promotion is a
scalable strategy but it does not deliver some of the limited results and this is
especially in the niche or the aspirational races such as ultras.
2. Advertising could be done through paid marketing channels. Facebook is considered
as the platform for effectiveness and value for money. It has a reach to a great number
of advertisers. Hence, for making an investment into the paid marketing, the company
or the sponsors will have to determine the amount that they are willing to spend on the
registration. The aim should be to indulge in the conversations rather than clicks. This
could be done through optimising the campaigns. The company should also try to test
new ways of advertising ("4 Essential Marketing Strategies for Nonprofit Races",
2019).

ACCOUNTING INFORMATION SYSTEM 11
3. Remarketing and photo marketing. In this, the pictures are used for the purposes of
marketing the race. This works and blends well on Facebook and is best suited for the
mass participation of the events. It uses the rare pics as the marketing tool by the way
of making the pics available to the participant and providing them with it free of cost
and this encourages tem to share them online and advertise about the event ("The 5
P’s of Race Promotion - Athlinks Services", 2019).
With regard to an additional recommendation, the company could increase the fare of the
ticket. Since the race is so popular, the stated price would not affect the participants from
participating.

ACCOUNTING INFORMATION SYSTEM 12
References
4 Essential Marketing Strategies for Nonprofit Races. (2019). Retrieved 8 October 2019,
from https://www.eventbrite.com/blog/marketing-nonprofit-races-ds00/
How to Promote Your Race: Our Ultimate Guide. (2019). Retrieved 8 October 2019, from
https://www.racedirectorshq.com/race-promotion-guide/
The 5 P’s of Race Promotion - Athlinks Services. (2019). Retrieved 8 October 2019, from
https://services.athlinks.com/the-5-ps-of-race-promotion/