Disco Fever: Tutor Version
These notes have various guidance about the use of this case study. There is available:-
- Suggestions for preliminary work
- Guidance about the activity worksheet - disco costs
- Answers to the activities
- Suggestions for further development
- Learning / assessment objectives
- The spreadsheet activities
- Desktop publishing design
- Attainment target levels
- GNVQ key skills
Preliminary Work
Some pupils might benefit from working on an introductory spreadsheet like the one below. It focuses on the calculation of just one possible value for the number of tickets sold.
| Takings | Food Costs | ||
| Number of tickets sold | 50 | 75.00 | 35.00 |
| Disco hire cost | 50.00 | ||
| Total cost | 85.00 |
Profit -10.00
By adjusting the value of the number of tickets sold, you can see the resulting profit change immediately. This enables the pupil to carry out an investigation to find the sales figure needed to break even.
The charts on the worksheets provide more of an overview of the situation. This gives pupils the opportunities to carry out the investigation on a broader scale and gain a clearer picture.
Activity Worksheet: Analysing disco costs
Though this worksheet has a school/charity setting, its content is a typical business analysis. This topic provides an introduction to some basic concepts in the field of business studies. The general business terminology applicable to this example is as follows:
| Takings | Sales |
| Disco hire | Fixed costs, overheads |
| Food costs | Variable costs |
| Profit | Net profit |
The break-even point is the sales figure at which the net profit is zero.
The marginal profit is the difference between sales and variable costs.
Answers
Questions 1 and 2
(a) 100 tickets (b) 150 tickets
Question 3
| Tickets sold | Takings | Disco hire | Food cost | Total cost | Profit |
|---|---|---|---|---|---|
| 121 | 180.00 | 50.00 | 84.00 | 134.00 | 46.00 |
| 122 | 181.50 | 50.00 | 84.70 | 134.70 | 46.80 |
| 123 | 183.00 | 50.00 | 85.40 | 135.40 | 47.60 |
| 124 | 184.50 | 50.00 | 86.10 | 136.10 | 48.40 |
| 125 | 186.00 | 50.00 | 86.80 | 136.80 | 49.20 |
| 126 | 187.50 | 50.00 | 86.80 | 137.50 | 50.00 |
| 127 | 189.00 | 50.00 | 87.50 | 138.20 | 50.80 |
| 128 | 190.50 | 50.00 | 88.90 | 138.90 | 51.60 |
| 129 | 192.00 | 50.00 | 89.60 | 139.60 | 52.40 |
| 130 | 193.50 | 50.00 | 90.30 | 140.30 | 53.20 |
| 131 | 195.00 | 50.00 | 91.00 | 141.00 | 54.00 |
125 tickets must be sold to make 50.00 profit
Question 4
| Tickets sold | Takings | Disco hire | Food cost | Total cost | Profit |
|---|---|---|---|---|---|
| 60 | 90.00 | 50.00 | 42.00 | 92.00 | -2.00 |
| 61 | 91.50 | 50.00 | 42.70 | 92.70 | -1.20 |
| 62 | 93.00 | 50.00 | 43.40 | 93.40 | -0.40 |
| 63 | 94.50 | 50.00 | 44.10 | 94.10 | .40 |
| 64 | 96.00 | 50.00 | 44.80 | 94.80 | 1.20 |
| 65 | 97.50 | 50.00 | 45.50 | 95.50 | 2.00 |
| 66 | 99.00 | 50.00 | 46.20 | 96.20 | 2.80 |
| 67 | 100.50 | 50.00 | 46.90 | 96.90 | 3.60 |
| 68 | 102.00 | 50.00 | 47.60 | 97.60 | 4.40 |
| 69 | 103.50 | 50.00 | 48.30 | 98.30 | 5.20 |
| 70 | 105.00 | 50.00 | 49.00 | 99.00 | 6.00 |
Selling 63 tickets makes the smallest profit; selling 62 tickets makes a loss. The theoretical break-even point is 62.5 but this is impossible in reality.
Question 5
| Tickets sold | Takings | Disco hire | Food cost | Total cost | Profit |
|---|---|---|---|---|---|
| 0 | 0.00 | 55.00 | 0.00 | 55.00 | -55.00 |
| 10 | 15.00 | 55.00 | 8.50 | 63.50 | -48.50 |
| 20 | 30.00 | 55.00 | 17.00 | 72.00 | -42.00 |
| 30 | 45.00 | 55.00 | 25.50 | 80.50 | -35.50 |
| 40 | 60.00 | 55.00 | 34.00 | 89.00 | -29.00 |
| 50 | 75.00 | 55.00 | 42.50 | 97.50 | -22.50 |
| 60 | 90.00 | 55.00 | 51.00 | 106.00 | -16.00 |
| 70 | 105.00 | 55.00 | 59.50 | 114.50 | -9.50 |
| 80 | 120.00 | 55.00 | 68.00 | 123.00 | -3.00 |
| 90 | 135.00 | 55.00 | 76.00 | 131.50 | 3.50 |
| 100 | 150.00 | 55.00 | 85.00 | 140.00 | 10.00 |
| 110 | 165.00 | 55.00 | 93.50 | 148.50 | 16.50 |
| 120 | 180.00 | 55.00 | 102.00 | 157.00 | 23.00 |
| 130 | 195.00 | 55.00 | 110.50 | 165.50 | 29.50 |
| 140 | 210.00 | 55.00 | 119.00 | 174.00 | 36.00 |
| 150 | 225.00 | 55.00 | 127.50 | 182.50 | 42.50 |
| 160 | 240.00 | 55.00 | 136.00 | 191.00 | 49.00 |
Profits are considerably lower. The new break-even point is just over 80 tickets sold.
After some experimentation, you will find that it is not possible to re-create the previous profit values exactly but a price increase of 20p to a ticket of £1.70 restores the situation quite well.
Further Development
This particular topic lends itself to further investigation. What would happen if the school decided to make a charge for hiring the school hall? What if it were decided to charge more and provide better quality refreshments?
So far the question of 'demand' has not been introduced. What if the first disco to be held had 100 people attending? More people would come to the second disco if money were spent on advertising and the organisers hired some professional lighting equipment. A new analysis can be carried out to deal with this new information.
There is plenty of scope for asking pupils to write a report on their analysis.
There is further scope for pupils to work on a similar analyses of a different business scheme.
The alternative spreadsheet approach mentioned earlier under 'Preliminary work' lends itself to development, too. You can analyse problems which have several types of fixed costs and several types of variable costs.
Learning / Assessment objectives
One of the main learning / assessment objectives is to develop an IT capability in the students, which involves :
- knowledge about tools and applications
- the skill to use IT tools and applications appropriately and effectively
- understanding the opportunities of IT
- knowledge of the effects and limitations of IT
The other main learning / assessment objective is to develop knowledge and understanding of these business studies skills and concepts:
- break even analysis (fixed, variable and total costs, sales)
- cash flow forecasting and statements (revenue, assets, profit, net, gross, income. expenditure)
The Spreadsheet activities
The National Curriculum strand of modelling information is addressed.
- explore a given model with a number of variables and create models of their own, in order to detect patterns and relationships;
- modify the rules and data of a model, and predict the effects of such changes.
Modelling information can be achieved through the use of simulations, spreadsheets, adventure games and what - if scenarios.
The first thing the students should be doing is working on the first task of using the spreadsheet resource to analyse disco costs, using the activity worksheet, they will be finding the break even point and making a chart of their results, from the initial spreadsheet that is set up. The suggestions for further work will be used to stretch some of the students. The second thing is to use the cash flow forecasting spreadsheet to look at the yearly projections for the business, the students will start off with a table, like Figure 1 and will be asked to input the formulas and complete the table, so it looks like Figure 2.
These tasks will involve each student interacting with the spreadsheet to change formulas and make calculations, to handle the information and change the columns into graphs. Investigating the purpose and use of models, the reasons why models are used, and the capabilities and limitations of models. How rules govern the operation of a model, the circumstances under which the rules governing a model should be changed and modifying or creating suitable procedures and programs to model situations.
The Desk Top Publishing design
This section addresses the National Curriculum strands of communicating and handling information, using text and visual images, incorporated within this package. The learning / assessment outcomes are:
- Use IT to handle and communicate information;
- Use IT to enhance their own learning and the quality of their work;
- Analyse the requirements of a specific task taking into account the information required and the purpose for which it is needed, and decide how the information will be presented and interpreted.
The task involves the students using all of the main functions in the package; page set up, columns and rows, formatting text, wrapping text, inserting pictures, plus others. Included are some examples of three-fold brochures of type the students are producing, the examples show the brochures being set up at various stages. There is a need to take into account the audience when presenting information, including visual impact, readability, detail, complexity, content and organisation. The use of text fonts, styles and sizes, clip art, charts and graphs, borders, tints and shading, landscape, portrait and other views.
Attainment Target Levels
This work should provide all students with the opportunity of showing learning or producing evidence which is in line with National Curriculum attainment level 5 to level 7. Italics identify the statements relevant for this course work.
Level 5
Pupils use IT to organise, refine and present information in different forms and styles for specific purposes and audiences. They select the information needed for different purposes, check it's accuracy and organise and prepare it in a form suitable for processing using IT. They create sets of instructions to control events, and are becoming sensitive to the need for precision in framing and sequencing instructions. They explore the effects of changing the variables in a computer model. They communicate their knowledge and experience of using IT and assess its use in their working practices.
Level 6
Pupils develop and refine work, using information from a range of sources, and demonstrating a clear sense of audience and purpose in their presentation. Where necessary, they use complex lines of inquiry to test hypotheses. They develop, trial and refine sets of instructions to control events, demonstrating an awareness of the notions of efficiency and economy in framing those instructions. They understand how IT devices can be used to monitor and measure external events, using sensors. Pupils use computer models of increasing complexity, vary the rules within them, and assess the validity of these models by comparing their behaviour with other data. They discuss the wider impact of IT on society.
Level 7
Pupils combine a variety of forms of electronic and other information for presentation to an unfamiliar and critical audience. They identify the advantages and limitations of different data-handling applications, and select and use suitable information systems, translating inquiries expressed in ordinary language into forms required by the system. They use IT equipment and software to measure and record physical variables. They design computer models or procedures, with variables, which meet identified needs. They consider the limitations of IT tools and information sources, and of the results they produce.
GNVQ Key Skills identified
The work the students are undertaking, using the spreadsheet, desktop publishing and the Internet would allow them to show and collect evidence to satisfy these requirements for the key skill of Information Technology.
2.1 Prepare information
The student selects information appropriate to the task and enters it into software so that it is easy to edit, correcting errors noticed on entry. The student makes decisions about the most appropriate way to store the input and makes backup copies. The students puts right any simple equipment faults and keeps the source information for reference.
Performance Criteria
A student must:
- Select information appropriate to the task
- enter information into software in ways that will make it easy to edit
- keep source information required for the task
store input systematically and make backup copies
2.2 Process Information
The student finds the information required for the task and edits and reorganises it as appropriate. The student uses numerical information to make calculations. The student saves work regularly.
Performance Criteria
A student must:
- find information required for the task
- use appropriate software to edit information
- process numerical information by using software to make calculations
- reorganise information required for the task
- save work at appropriate intervals
2.3 Present Information
The student considers alternative ways of presenting and displaying information and selects the way which best meets requirements. The student produces hard copy of the information, stores the information in files and makes backup copies.
Performance Criteria
A student must:
- Present information in different ways and select which way best suits the requirements of the task
- use appropriate software to display information
- use appropriate software to produce hard copy of information
- store information in files and make backup copies
These activities were prepared by F. Beeby with help from a variety of sources. A full bibliography is available on request.