CASE STUDY SOLUTION

The board has seen increase in the number of people who are willing to apply for shares. Thus the club has to decide whether they can issue more shares or not. In order to decide this, the club has selected 3 main criteria, which are discussed as under:
First criteria: This criteria is based on part where the expected number of days when the attendance is more than 500
The list is as:
595
516
578
541
Thus there are only 4 days when the attendance is more than 500. In order to issue the shares the club has put a condition that the number of days for which the attendance is more than 500 should be less than 5; the requirements, which were mentioned in the case, are fulfilled here.
Second criteria:
As per the case demand in the second criteria the average has to be calculated. The average is calculated using the excel function in average. The average comes out to be 314. 1304 which is below the limit of 320 as decided in the criteria.
Third criteria:
The average weekend attendance should not be more than 500. For this purpose every 6th and 7th figure is taken and the average thereof is calculated. The average comes out to be: 432.26, which are again less than the threshold limit.
Thus as all the three criteria are satisfied thus the company can issue shares. The new shares will be issues for every two attendees between the current daily average and a cap of 400.
The current daily average is 314. Thus the difference will be taken i.e. (400 -314 = 86). 2 would divide this, as one share will be issued to every two members. Thus the no of shares would be 86/2 = 43.
As one share is for $1000, thus it would result in additional revenue of $1000 X 43 = $43000