Nonprofit
Ticket sales are low because the restricted government grants are to subsidize ticket prices just to children 12 and under.
It is expected that total children and adult traffic will increase 25% as the result of increased marketing expenses.
20% of marketing expenses are fixed; the rest are variable; all other expenses are fixed
The adult:child ratio of visitors will remain the same as this year.
The fundraising effort will help pay for gift shop inventory such that COGS for the gift shop will drop from 50% to 40%.
Gift shop sales will continue to vary directly with ticket sales.
Next year they plan to double their fixed marketing expenses, and as a result will increase ticket sales by 25%.
To be able to subsidize the increase ticket sales they will have to double fundraising to $200,000. This will require an additional fundraising expense of $50,000 beyond this year's level, plus an additional $20,000 of salaries for additional headcount.
Due to the lower tax revenue of the city government from the recession, the museum's grant will be cut by half.

• Given the assumptions and data in this Excel file:
  • complete next year's budgeted figures for each entity within the same Excel worksheet (yellow cells)
  • include your reasoning for most of the budgeted figures (green cells)

Because of a bad recession, government grants were not cut by 50% but are eliminated completely for next year's budget and fundraising effortsdespite an increase in expensesdid not improve at all.