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Case Study: the Craddock Cup Essay

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Craddock Cup case study Question Number 1 In determining whether to keep or drop the Craddock Cup, the overhead expense allocations of City field rental, CYSL salaries and CYSL rent should be revised. In determining whether to keep or drop the Craddock Cup, the allocation of City filed rental fee of $1200 from CYSL to the Craddock Cup should be eliminated. CYSL rented 10 soccer fields from the city for 40 weeks a year for a total fee of $48000. However, even if the Craddock Cup was dropped, the rental fee of $48000 can not be avoided. So, the cost of City field rental fee is the irrelevant cost, The allocation of the cost of CYSL salaries should also be revised. The 15% of Rivaldo's salary($6300) should not be allocated as …show more content…

| |Contributions 14000 | | | |Total revenue $ 49840 | | | |T-shirts 1920 | |Concessions 8640 | |Soccer clinic 2592 | |Player insurance 2304 | |Registration with state YSL 1500 | |Soccer balls 432 | |Referees 6400 | |Trophies 900 | |Hotels 4000 | |Face books 450 | |Marketing and advertising 2200 | |CYSL

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