# Week 6 Check Point

Topics: Costs, Rooms, Presenter Pages: 2 (360 words) Published: August 22, 2013
Resource: Ch. 11 in Financial Management
Complete Exercises 11.1 & 11.2 on pp. 158–159.
Determine the most important issues for a human service agency to address in fee setting. Determine the issues that are least important.

TABLE 11.1 Government Benefits Seminar
Proposed Budget
1. Conference room rental \$ 250.00
2. Audiovisual equipment rental 100.00
3. 4 presenters @ \$500 2,000.00
4. 60 workbooks @ \$15 900.00
5. 60 lunches @ \$15 900.00
6. 60 coffees @ \$3.50 210.00
Total costs \$4,360.00

11.2
Conference room rental \$ 250.00
2. Audiovisual equipment rental 100.00
3. 4 presenters @ \$500 2,000.00
4. 60 workbooks @ \$15 900.00
5. 60 lunches @ \$15 900.00
6. 60 coffees @ \$3.50 210.00
Total costs \$4,360.00
7. Indirect costs @ 25% of \$4,360.00 \$1,090.00
Subtotal \$5,450.00
8. Profit margin @ 5% of \$5,450.00 \$ 273.00
Total \$5,723.00

60 trainees @ \$116 = \$6,960.00
50 trainees @ \$116 = \$5,800.00
10 trainees @ \$ 58 = 580.00
Revenue \$6,380.00
Revenue loss on 10 half-priced fees = \$6,960.00
6,380.00
\$ 580.00 (revenue loss)
\$ 580.00
Increase in full fee to offset revenue loss = \$11.60
50
Adjusted full fee = \$ 128.00 (\$116 + \$12)
Revenue computations:
60 trainees @ \$116.00 = \$6,960.00
50 trainees @ \$128.00 = \$6,400.00
10 trainees @ \$ 58.00 = 580.00
\$6,980.00

When it would come to the most important issues it would be that there is enough room for all the trainees. I feel that if three is not enough resources for the trains to use then the training would not be worth putting on. Some of the things that I would do Is maybe have the outside members bring items in so that the cost can be cut from the coffee breaks this would allow for the extra funds for other items Like have another presenter come in so there could be more questions answered and possibly become more profit able margin.