# Hsm 260 Week 6

Topics: Costs, Variable cost, Fixed cost Pages: 3 (602 words) Published: June 30, 2011
Week 6 HSM 260 Due Day 7
Exercise 11.1
Followed by the family and child benefits being such a success in the previous seminars, the Advocates for Children agency is going to conduct another seminar. The agency is a private nonprofit agency. This seminar is going to be conducted in one day for the children and families within the area. The activities that will be conducted at the seminar will provide a profit to help support the agency. The seminar is planned to take place in a conference room that will accommodate up to 45 trainees. The executive director has prepared a budget that will give a breakdown of all the cost that will be involved in the seminar. Proposed Seminar Budget

1. Conference room rental \$175.00 \$175.00
2. Audiovisual equipment Rental \$75.00
3. 4 presenters @ \$500.00 \$2,000.00
4. 45 workbooks @ \$15.00 \$675.00
5. 45 lunches @ 10.00 \$540.00
6. 45 coffees @ \$3.50 \$158.00
Subtotal \$3,623.50
7. Indirect costs @ 25% of \$3,622.50 \$906.00 Subtotal \$4,529.00 8.Profit margin @ 5% of \$4,528.13 \$227.00

Subtotal \$4,756.00 Fixed Costs
1. Conference room rental \$175.00 \$175.00
2. Audiovisual equipment rental \$75.00
3. 4 Presenters @ \$500.00 \$2,000.00
4. Indirect costs @ 35% of \$3,675.00 \$906.00
5. Profit margin @ 5% of \$4,594.00 \$227.00
Total Fixed Costs \$3,383.00
Variable Costs
1. 45 workbooks \$15.00 2. 45 lunches \$12.00
3. 45 coffees \$3.50
Total Variable Costs \$30.50
I’m going to base my breakeven point and my go/no on 30 people that will participants. And by setting it lower it will allow us not to...