I need help creating a quarterly budget for this problem. The quarterly budget should include revenue: visitor revenue, membership revenue, grant revenue, gift shop revenue, total. And the Expenses: fixed costs, variable operating costs, cost of goods - gift ship, and total. Finally a surplus/ deficit total. This is for each quarter (4 total). I am specifically asking about questions 1-3, but if you can only help with one answer then it's fine. Thanks!

The Taos Museum of Southwestern Arts and Crafts (TMSAC) presents rotating exhibits of the works of artists and artisans from the Southwestern United States. Historically, the museum has derived its funding from three sources: grants, annual memberships, and visitor revenues. For its next fiscal year, TMSAC expects to receive $564,000 in grants from various sources. It also expects 1,255 people to be supporting members of the museum. On average, supporting members each give TMSAC $125 per year. The museum expects the following mix of visitors during its next fiscal year, each paying the amount shown in the right column of the schedule.

Type of Visitor

% of Total

Price

Regular

65

$10.00

Group

15

$ 6.00

Senior Citizen

10

$ 5.00

Student

10

$ 2.00

TMSAC has $1,125,000 in fixed expenses each year. In addition, the museum spends an average of $1.25 per visitor for handouts that describe the exhibits on display. TMSAC estimates that it has variable electric costs of $.25 per visitor. Plus, the museum offers each visitor the option of receiving an audio flash drive that describes the featured exhibit of the month. Visitors are allowed to keep the flash drive as a memento of their visit. Historically, these flash drives have cost the museum $3.00 each to produce and replicate. On average, 30 percent of the people visiting the museum have taken advantage of the free flash drive offer.

Question 1: The executive director of the museum has asked you to tell her the minimum number of visitors who must come to the museum each year in order for TMSAC to break even. Using the information given above, what is TMSAC's break-even visitor volume?

Because of Taos's location in the mountains of the southwest, the museum tends to have a seasonal pattern to its visitor flow with proportionally more people visiting TMSAC in the summer than in the winter. In addition, revenue from grants and memberships tends to flow into the museum unevenly throughout the year. The seasonal flow of visitor, grants, and membership revenues is distributed throughout the year as follows:

Quarter 1

Quarter 2

Quarter 3

Quarter 4

Visitor Revenue

15%

25%

45%

15%

Membership

Revenue

40%

20%

20%

20%

Grant Revenue

25%

50%

10%

15%

Fixed expenses are distributed evenly throughout the year, that is, 25 percent per quarter. The museum's marketing director forecasts that 80,000 people will visit the museum during the coming fiscal year.

TMSAC's director of marketing has convinced the executive director that a museum shop can be operated profitably in a small space just off the main entrance. She agrees, and the shop is scheduled to open on the first day of the second quarter. The marketing director estimates that 5 percent of the people who visit the museum will make purchases from the shop. Based on his experience, he expects the average purchase to be $40. TMSAC's business manager estimates that the cost of goods sold will be 75 percent of the museum shop's sales revenue. The shop will be staffed by volunteers at no cost to TMSAC for the upcoming fiscal year.

Question 2. Using the information above, including the gift shop, draft a budget of revenues, support, and expenses for TMSAC for each of the four quarters of the fiscal year, and summarize the budget for the full year.

Question 3. What impact would the inclusion of the gift shop have on TMSAC's expected break-even volume during a normal full year of operation? You may assume that all other costs remain the same.