Prepare a operating budget based on the following information:

Expected Sales

Art Course 2 Semesters for the year 3 Courses offered each semester Maximum enrolment 32 students Expected capacity 94% Tuition $5,000 per student

Customized Courses 15 Courses 15 Students per course Course Fee $110,000 per course Each course is 5 weeks In order to achieve these goals

The Marketing department spend $350,000 on print, television and radio advertising as well as increase the sales commission rate from 4% to 6% of revenue.

Direct Materials : Each student will receive a set of Student brushes. It is expected that they will cost approximately $750 each While we do not have any brushes right now I would also like to end the year with 10 extra sets of tools in inventory Direct Labour For our employees who are

Direct Labour: associated with instruction. Instructors- 3 hours per day, 5 days per week for duration of course Qualified Artists 3 hours per day 5 days per week for duration of course

I predict that our wage costs will be as follows for 2019-2020: Employee Position Wage Rates Instructors $ 100.00 per hour artists 40.00 per hour Supervisors $95,000 per year I am somewhat concerned that the quality of the staff recruited will not be good as what we currently have but in this competitive market quality employees are difficult to come by.

Other projected costs

Expected Cost Electricity $ 75.00 per Student Interest and Bank Charges $ 65,000 Supplies- Shop $ 400 per course Amortization of Vehicle $ 62,500 per year Amortization of Equipment $ 13,000 per year Property Rents- facility $ 95,000 per year Janitorial $ 14,400 per year Supplies- Head Office $ 2,000 per year Rent- Head office $ 47,000 per year Administrative wages $ 37,500 per year Head office Expenses $ 223,125 per year

Work in Progress April 30, 2021-$84,400