Assignment: Fee Setting Essay

The government benefits seminar for children and families was a major success, so Advocates for Children result delight out a similar seminar in a nearby town. The decision producer director has decided that this second seminar should make the highest possible amount of money. For this reason, they pass on not offer a reduced fee schedule, and all observeees essential pay the entire fee. This seminar will happen in a smaller room than the first one did, which can only leave lieu for 45 trainees, at most. Here is the seminars proposed budgetProposed Seminar Budget1. convocation room rental $175.00 $ 175.002. Audiovisual equipment rental $75.003. 4 presenters $ viosterol $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. Profit al let outance 5% of $4,528.13 $ 227.00 Subtotal $4,756.00You are the executive director. Following the checklist in Figur e 11.1, perform all the computations needful to set a fee. What will your fee be? What is your break-even power power point? What is your go/no-go decision point?Fixed be1. 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 $ 906.005. Profit security deposit 5% of $4,594.00 $ 227.00 conglomeration Fixed cost $3,383.00variable star Costs6. 45 workbooks $15 $15.007. 45 lunches $12 12.008. 45 coffees $3.50 3.50Total Variable Costs $30.50Breakeven pointI would put my breakeven and go/no go point at 30 attendees. I have set it lower to make up for margin or error, and when more than 30 people 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 set within the standard bracket.Exercise 11.2As the executive director of Advocates for Children, you have had a change of h eart. You decide not to attempt to increase 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 anesthetic unite Way in the community hosting the seminar has guaranteed 45 participants. If fewer than 45 participants register for the seminar, the United 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 management for human service administrators. Boston, MA Allyn and Bacon.