# Fee Sitting

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• Published : December 12, 2012

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Fee Setting

Calculating Fixed Costs, Variable Costs, and Break-Even Point for a Program 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 Costs
1. Conference room rental \$ 175.00 \$175.00 2. Audiovisual equipment Rental \$75.00 \$75.00 3. 4 Presenters @ \$500 \$2000.00 4. Indirect costs A@ 25% of \$ 3.675.00 \$906.00 5. Profit Margin @ 5% of \$ 4,594.00 \$227.00 Total Fixed Costs \$3,383.00

Variable Costs
6. 45 Workbooks @ \$15 \$15.00 7. 45 Lunches @ \$12 \$12.00 8. 45 Coffees @ 3.50 \$3.50 Total Variable Costs \$ 30.50 I have chosen to set my breakeven point and go/no go decision at 30 participants. Using Thirty Trainees as the Break-Even Point

XP = A + BX
30P = \$3,383.00 + 30.50 (30)
30P = \$3,383.00 + \$915
30P = \$4298
30P/30 = \$4298/30
P = \$143.27
The fee will be \$143.27 per person for the training session. The fee is within the range that is in the community. I choose to no go at this point in time because I would need 33 participants to make any type of profit on this training. With the total budget being \$4,756.00/30 = 158.53 and \$ 143.27 * 30 = \$4298.10 I would not even break even if 30 participants came to the training.

11.2

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 Total \$4,529.00 Variable Costs
6.45 Workbooks @ \$15 \$15.00 7.45 Lunches @ \$12 \$12.00 8.45 Coffees @ 3.50...