Managing Revenue and Costs to Implement Strategy: The Conference Organizer's Dilemma

This instructional case describes a situation in which revenues include both a fixed and variable component. The situation illustrated is common among nonprofits that have sponsor/donor revenues as well as client‐service revenues. The case provides students with an opportunity to explore cost–volume–profit relationships in greater depth than usual textbook illustrations and reinforces their understanding of the important link between revenues, costs and activities, and how all these relationships connect to strategy.