Fee Setting

Topics: Variable cost, Costs, Fixed cost Pages: 4 (471 words) Published: March 14, 2011
Fee Setting Assignment

Candace Fralix

February 18, 2011

HSM/260

Proposed Seminar Budget
1. Conference room rental $175.00 $ 175.00
2. Audiovisual equipment Rental 75.00
3. 4 presenters @ $500 2,000.00
4. 45 workbooks @ $15 675.00
5. 45 lunches @ $12 540.00
6. 45 coffees @ $3.50 158.00
Subtotal $3,623.00
7. Indirect costs @ 25% of $3,675.00 $ 906.00
Subtotal $4,529.00
8. Profit margin @ 5% of $4,594.00 $ 227.00
Total $4,756.00

Fixed Cost
Conference room rental$175.00
Audiovisual equipment rental$75.00
4 Presenters @ $500.00$2,000
Indirect Cost @25% of $3,675$906.00
Profit Margin @5% of $4,594$227.00
Total Fixed Cost$3,383.00

Variable Cost
45 Workbooks @ $15.00$675.00
45 Lunches @ $12.00$540.00
45 Coffees @ $3.50$157.50
Total Variable Cost$1372.50
My Break-Even point and go/no go decision is set at 30 participants. It is set lower so that if we exceed more than thirty participants then the rest would be a profit.

Break-Even Point
XP= A+BX
30P= $3,383+$1372.50
30P=$3,383+$41,175
30P=$44,558
P=$1485.26
The fee is still within the standard bracket.

Exercise 11.2
Fees setting based on the following costs:
Direct cost will comprise of
Fixed direct costs
Human resource cost (Trainer Cost)
($ 200 per hr and if seminar is 8 hr then total per day) = $1,600 Other fixed direct costs = $400
Variable direct costs
Material cost (If books are given to each participant) = $10 Other Miscellaneous variable direct costs = $5
Indirect cost will comprise of
Fixed indirect costs (per Day)
Depreciation = 274
Rent = 100
Other fixed indirect costs = 300
Variable Indirect costs (per participants)

Miscellaneous variable direct costs = 5

Total Variable Costs (per participants)
Material Cost$10.00
Other Miscellaneous Variable Direct Cost$5.00
Miscellaneous Variable Direct Cost$5.00

Total Variable Cost=$20.00

Total Fixed Cost
Human Resource Cost...
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