After you have calculated the 2016 budget, suppose your boss asks you to revise it so that overall revenues increase by 4% and operating expenses decrease by 1.5%.

a. Based on current trends in facility management, what revenues do you anticipate can be increased? What expenses can be decreased?

b. Use the 2016 budget that you created in Problem 1 and create a new 2016 budget based on the revenue increases and expense decreases outlined in Problem 2 and your work on Problem 2a.

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EXHIBIT 6.10 Sample budget for Practice Problem 1. COLUMBIA ARENA COMPANY 2015 OPERATING BUDGET