The case has three primary functions:
to present the critical value of comprehending the cost behaviors in computing the impact of the Corvallis Cup youth soccer tournament in order to determine whether it would be best to continue, put an end to or invest further in the tournament
to present an effective tool to ponder over sunk costs, overhead allocation procedures, and the effect of inadequate allocation on the revenue/loss shown for a division of the company
to enable students to formulate easy breakeven analysis and evaluation based on signficant costs.
Summarize Relevant Facts
Identify the Primary Problem
Identify any Secondary Problem
Answer these specific case questions
Review the overhead expense allocations currently made from CYSL to the Craddock Cup and determine if any should be changed or eliminated.
Calculate the expected financial impact of adding 32 more teams to the tournament schedule
Calculate the breakeven registration fees per team for 64 teams given a $1000 increase in advertising expense, 15 more college recruiter, and 20 additional face books.
5. Recommendations (on whether to keep or drop the Craddock Cup) and your reasoning
6. Reflection- What Lessons can we learn from this case?