Assignment: Fee Setting Essay

The government benefits seminar for children and families was a study success, so Advocates for Children al funky for carry prohibited a similar seminar in a nearby town. The administrator director has unflinching that this second seminar should hit the highest possible core of money. For this reason, they will non offer a reduced fee schedule, and all attendees essential pay the entire fee. This seminar will go along in a smaller agency than the first one did, which can provided leave space for 45 trainees, at most. Here is the seminars proposed budgetProposed Seminar cipher1. Conference way rental $175.00 $ 175.002. audiovisual aid equipment Rental $75.003. 4 presenters $500 $2,000.004. 45 workbooks $15 $675.005. 45 lunches $12 $540.00 6. 45 coffees $3.50 $158.00Subtotal $3,623.507. Indirect costs 25% of $3,622.50 $ 906.00 Subtotal $4,529.008. net income leeway 5% of $4,528.13 $ 227.00 Subtotal $4,756.00You are the executive director. Following the checklist in throw 11.1, finish all the computations necessary to portion a fee. What will your fee be? What is your break-even load? What is your go/no-go decision identify?Fixed cost1. Conference mode rental $175.00 $ 175.002. Audiovisual equipment Rental 75.003. 4 presenters $500 2,000.004. Indirect costs 25% of $3,675.00 $ 906.005. Profit boundary line 5% of $4,594.00 $ 227.00 summate Fixed be $3,383.00 varying Costs6. 45 workbooks $15 $15.007. 45 lunches $12 12.008. 45 coffees $3.50 3.50Total unsettled Costs $30.50Breakeven pointI would put my breakeven and go/no go point at 30 attendees. I have focalise it lower to make up for margin or error, and when more than 30 mess attend the profits will also increase. This is the revenue maximization strategy that I will use.XP= A+BX30P= 3,383 + 30.50(30)30P= 3,383 + 91530P= 4,298P= 143* fee will still be nail down within the standard bracket.Exercise 11.2As the executive director of Advocates for Children, you have had a change o f heart. You descend not to campaign to maximize revenues in this second seminar. You decide to exclude a profit margin in the fee computation, but you will include indirect costs. Additionally, the local unite focus in the community hosting the seminar has guaranteed 45 participants. If fewer than 45 participants register for the seminar, the get together Way will make up the difference. In exchange for this guarantee, the United Way has asked you to set the seminar fee as low as possible. Following the checklist in Figure 11.1, perform all the computations necessary to set a fee. What will your fee be?Fixed Costs1. Conference room rental $175.00 $ 175.002. Audiovisual equipment Rental 75.003. 4 presenters $500 2,000.004. Indirect costs 25% of $3,675.00 $ 906.00Total Fixed Costs $3,156.00Variable Costs5. 45 workbooks $15 $15.006. 45 lunches $12 12.007. 45 coffees $3.50 3.50Total Variable Costs $30.5045 participants45P = 3156 + 30.50(45)45P = 3,156 + 1373 (rounded-up)45P = 4549 (rounded-up)(Divide both sides by 45)P = $101.00 (rounded-up)For 45 participants,the fee is $101.00 (100.63 if not rounded-up). * I chose to use the number 45 because the United Way has guaranteed that they will make up the difference if less than 45 people attend.ReferenceMartin, L. (2001). Financial heed for human service administrators. Boston, MA Allyn and Bacon.