CHAPTER 2 Manning for Success: Budgeting 33 TABLE 2-1 Holy Land Trip-Special Purpose Budget HN ] CHURCH OF MILLBRIDGE Budget 3 Holy Land Trip 4 5 PROJECTED RECEIPTS 6 Charges 7 Less Uncollectibles 8 Net Charges 9 Fundraising 10 Total Receipts 11 TABLE 2-2 Holy Land Trip-Special Purpose Budget: Draft Projeler Per of Ponte Person Total 1 CHURCH OF MILLBRIDGE 2 Budget 3 Holy Land Trip 4 S PROJECTED RECEIPTS 6 Charges Less Uncollectibles 8 Net Charges Fundraising 10 Total Receipts 30 $2,000 5 60,000 11.300 3 58.200 30 250 7.500 5 65700 12 PROJECTED PAYMENTS 11 Airfare 14 Hotels Chaperone Salarios 16 Food 12 Admission Fees Guide 10 Local Transport (Bus) 20 Entertainment 21 Other Contingency Fund 23 Total Payments 24 25 Projected Surplus Defior 32 $1,000 5 32,000 30 1,200 36,000 2 3,000 5,000 32 600 19,200 22 250 8.000 1 3,000 3,000 2,500 2,500 32 300 9,600 32 200 6,400 2.500 $125,200 5 (58,500 by an assumed charge of $2.000 (line 6, column C) to get the total charges of $60,000. After discussion, Dwight and the priest decided to use 3 percent of total charges as an estimate for uncollectibles. Assuming that each student not only paid $2,000, but also raised $250 through fundraising activities (e.g., bake sales, car washes), there would be an additional $7.500 in receipts. Dwight believed this was a bit ambitious, but the father thought it was an attainable goal. He felt that if each teen committed to raising those funds, they would value the trip more and get more out of it. Dwight remained skeptical. 4-22. Review Father Purtell's Special Purpose Budget in Chapter 2. Determine which costs are fixed and which are variable. Assume that a $10,000 subsidy is available from the two parishes. How many teens are needed for the trip to break even? What is the contribution margin per teen above that break-even point? What complicating issues exist? SO 9 10 Price 11 12 13 Total Variable Revenue 14 15 Variable Costs: 16 17 18 19 20 21 22 Total Variable Costs 23 24 Contribution Margin 25 26 Fixed Cost 27 28 29 30 31 32 33 34 Total Fixed so SO 6 7 38 39 40 Without Subsidy FC Q P - VC 41 42 43 With Subsidy FC - Subsidy 44 Q 45 46 P-VC c 1 CHURCH OF MILLBRIDGE Budget Holy Land Trip 2 3 4 5 PROJECTED RECEIPTS 6 Charges 7 Less Uncollectibles 8 Net Charges 9 Fundraising 10 Total Receipts 11 TABLE 2-2 Holy Land Trip-Special Purpose Budget: Draft D 1 CHURCH OF MILLBRIDGE 2 Budget Holy Land Trip Projected Per of People Person Total 30 $2,000 $ 60,000 (1.809 $ 58,200 30 250 7.500 $ 65,700 5 PROJECTED RECEIPTS 6 Charges 7 Less Uncollectibles 3 Net Charges 9 Fundraising 10 Total Receipts 11 12 PROJECTED PAYMENTS Airfare 14 Hotels 15 Chaperone Salaries 16 Food 17 Admission Fees Guide 19 Local Transport (Bus) 20 Entertainment 21 Other 22 Contingency Fund 23 Total Payments 32 $1,000 $ 32,000 30 1,200 36,000 2 3,000 6,000 32 600 19,200 32 250 8,000 1 3,000 3,000 2,500 2,500 32 300 9,600 32 200 6,400 2.500 $125.200 $ 159.500) Projected Surplus / (Deficit) tyan assumed charge of $2,000 (line 6, column C) to get the total charges of $60,000. After Gncussion, Dwight and total charges as an estimate