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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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