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2017 BUDGET FOR THE CAPITAL PORTRAITS STUDIO Revenue Studio fees Note Ottawa $260,000 1 Gatineau 130,000 2 Digital images and prints 585,000 3 Total revenue

2017 BUDGET FOR THE CAPITAL PORTRAITS STUDIO

Revenue

Studio fees Note

Ottawa $260,000 1

Gatineau 130,000 2

Digital images and prints 585,000 3

Total revenue 975,000

Variable costs

Photography 195,000 4

Digital images and prints 351,000 5

Total variable costs 546,000

Contribution margin 429,000

Operating costs 300,000

Expected income before tax $129,000

Notes:

1. The Ottawa location expected 500 studio sessions at $400 each and 30 weddings at $2,000

each.

2. The Gatineau location was expected to bring in 50% of the Ottawa location's revenue in its

first year.

3. Revenue from digital images and prints was budgeted at 150% of studio fee revenues.

4. Variable costs for a studio session total $200. Variable costs for a wedding session are

$1,000.

5. Production costs were expected to be 60% of the digital images and prints revenue.

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