a. deduction while the rest of the members

 

a.   
Will HLW membership plan and fee structure
improve overtime for planning its cash receipts?

 

For the new
financial year plan, HLW is propagating in introducing a new section of fee
structure to improve its cash-based planning. Likewise, only an annual fee for
membership will be charged rather than its membership fees along with hourly
court fees. For these two categories of annual fees are followed like for
individual $300 and for a family $500. As mentioned by Abor (2017), this will
help to collect fees in advance at the completion time of membership
application. For this member, should be able to utilize the new tennis court as
often as they desire during the time of New Year and all the new membership
plans are to be sold under this new terms and conditions (Bauer &
Kourouxous, 2017). Along with this, a new promotional campaign is to be
entrusted to attract new members with respect to maintaining the attention of
old members as well.

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b.   
Estimation of the effect of sales revenues
resulting from such planned changes in the next financial year

 

HLW
management depicts that it will attain 70% of the total current members of the
club and the rest of the student members will automatically convert to
individual membership. For this, the active members from current respondents
will necessarily pay a yearly fee in advance and will receive special promo
deduction while the rest of the members will continue to receive membership
from October. However, as per Büsing, et
al. (2017) management estimates that there will be a loss of members which
would offset new members within the next 6 months from implementation of this
new plan. Due to this reason the annual fee structure for individual and family
members will gain reduction to $250 and $450 for each case if they pay on a
yearly membership plan.

 

c.    
Identification of key factors that helps HLW for
evaluating new membership plan

 

HLW
identifies that if there occurs any instance for loss of members due to the
transition of old membership plan to the new one, it will eventually be offset
fully with respect to new members within 6 months from instituting this new
plan. However, the new members need to pay an additional amount for a whole
year at the date of joining. As stated by Kim & Staker, (2017), the
management expects that the court time will necessarily be available for all of
its members under the new scheme. If on the contrary, this newer plan is to be
adopted, it necessarily means that at the start of the financial year that is
the start of tennis season a special promotional campaign will be expected to
conduct during the period of August and September.

 

 

 

 

 

 

 

 

 

 

 

 

 

Conclusion

 

To conclude this assignment, we identified the costs
per each unit of all the items of the US Bright business, moreover, we
illustrated the bill of activities of the Lamingtons and identified other
product costs for the lamingtons, which helps the business authorities for the
attainment of key areas in the production process. All the necessary
calculations in the first two questions are illustrated in the table together.
Along with this, in the second part of the assignment, it was described that
the changes in membership and fee structure while planning its cash-based
receipts will improve or not. In the following questions, we identified the impact
of changes in plan on the sales revenue that has on the next financial year and
the factors which helped the HLW Business for estimating new plans.

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