Part B: Flexible Budget The CWC budgeted on the basis of the existing 14 preserves and 27 conservation easements. New refers to additional preserves and/or easements. X% refers to the percentage of the original budget. Add: Travel: 3% for each new project in Stewardship 3% for each new project in General Program Postage: 1% for each new project in Stewardship 1% for each new project in General Program Professional Fees: 5% for each new project in General Program Supplies: 1% for each new project in General Program Telephone: 4% for each new project in General Program Salary and Payroll Tax Shift 3% from Administration to General Program for each new project Note: 2% refers to the percent of the original budget. If the budget for a line-item is $1,000 and 10% is assigned to a particular function (such as General Program), then if an additional 6% is added to that function (due to 3 new projects with 2% per new project) the new budget for that function is [10% + (3 x 2%)] multiplied by the original budget for that line item. In this case, .16 x $1,000 = $160 while the budget for the entire line-item is $1,000 x 1.06 = $1,060. No additional staff will be hired. The CWC plans to have some administrative duties performed by volunteers or deferred. Questions for Part B: 3) Prepare a Flexible Budget for the five functional areas based on 3 new projects. 4) Calculate the budget surplus/deficit based on your Flexible Budget. Do not change revenue from the total column in the Case 1 Solution Cash Budget. Recalculate the budget surplus/deficit as a percent of total expense. 5) What percent of the new budget is Administration expense? What dollar amount? 6) Does it appear reasonable that the CWC can handle the level of activity described in question 3 without an increase in revenue? Why? Discuss any concerns.