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Fee+Setting

# Fee+Setting - Fee Setting Exercise 11.1 Proposed Seminar...

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Fee Setting Exercise 11.1 Proposed Seminar Budget 1. Conference room rental \$ 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 2. Audiovisual equipment Rental \$75.00 3. 4 presenters @ \$500 \$2,000.00 4. Indirect costs @ 25% \$906.00 5. Profit margin @ 5% \$227.00 Total \$3,383.00 Variable Costs 4. Workbooks @ \$15.00 5. Lunches @ \$12.00 6. Coffees @ \$3.50 Total \$30.50 BEP/Fee/Go-No Go Point 34p = 3,383 + 30.50 (34) 34p = 3,383 + 1,037 34p = 4,420 P = \$130.00 The fee will be \$130.00 and the Breakeven Point and Go-No GO point will be 34 participants.

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Exercise 11.2 The new Fixed Costs minus the profit margin is: \$3,156.00 Given that we are guaranteed participation or the revenues from the full 45 people we can use the full 45 in our equation. 45p = 3,156 + 30.50 (45) 45p = 3,156 + 1,372.50 45p = 4,582.50 P = \$100.60 The new fee given the new information will be \$100.60 Some of the most important issues for a human service agency when setting fees are that first;
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