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Fee Setting

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Submitted By nikoleteter
Words 364
Pages 2
Fee Setting
Nikole Teter
HSM / 260
August 6th 2015
Andrea

Exercise 11.1
Proposed Budget

1. Conference room rental = $ 175.00 2. Audiovisual equipment rental = 75.00 3. Four presenters @ 500.00 = 2,000.00 4. Forty-five workbooks @ 15.00 = 675.00 5. Forty- five lunches @ 12.00 = 540.00 6. Forty – five coffees @ 3.50 = 158.00
Total
3,623.50 7. Indirect Cost @ 25% of 3,623.50 906.00
Total
4,529.00 8. Profit Margin @ 5% of 4,528.13 227.00
Total
4,756.00
Fixed Cost 1. Conference room rental 175.00 = 175.00 2. Audiovisual equipment rental 75.00 = 75.00 3. 4 Presenters @ 500.00 = 2,000.00 4. Indirect Cost @ 25% of 3,675.00= 906.00 5. Profit Margin @ 5% of 4,594.00= 227.00
Total
3,383.00
Variable Cost 1. Forty- five workbook @ 15.00= 675.00 2. Forty- five lunches @ 12.00 = 40.00 3. Forty – five coffees @ 3.50 = 158.00
Total variable costs
1,373.00
Break – Even Point
The break-even point is forty – five trannies. I would set the go . no go point at forty – five as well. This will ensure that at a bare minimum the cost are covered by the fees paid by attending trannies.
XP= A + BX
45P= 3,383+30.50 ( 1,372.50)
45P= 3,383 + 1373 ( 1372.50)
45P = 4756
P=106, Approx.

Exercise 11.2 1. Conference room rental 175.00 = 175.00 2. Audiovisual equipment rental 75.00 = 75.00 3. Four presenters @ 500.00 = 2,000.00 4. Indirect Cost @ 25% of 3,675.00= 906.00
Total Fixed Cost
3,156.00
5. Forty- Five workbooks @ 15.00 = 675.00 6. Forty – Five lunches @ 12.00 = 40.00 7. Forty – Five Coffees @ 3.50 = 158.00
Total Variable Cost
30.50
Forty – Five Participants
45P = 3156 + 30.50 ( 45)
45 P = 3,156 + 1373
45P = 4549
P= 101.00
If there are forty – five participants, the fee will be 101.00.

Reference
Budget and Pricing,

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