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.