Scenario: As a senior financial advisor you have decided to develop materials, then market and hold a two day investment seminar. You plan to do all the work within the next six months.

You want to create a good cost estimate for this project.

Below are some of your assumptions:

You will charge $500 per person for the two-day event.

You estimate that 35 people will attend.

Your fixed costs include $800 to rent a room for both days, setup fees of $420 for registration, and $315 for designing a postcard for advertising.

You will not include any of your labor costs for this estimate, but you expect that you will spend at least 150 hours developing materials, managing the project, and giving the actual presentations.

You would like to know what your time is worth given different scenarios.

You will order 5,000 postcards, mail 4,000, and distribute the rest to clients and colleagues.

Your variable costs include the following:

1) $25 per person for registration plus 4 percent of the seminar fee per person to handle credit card processing. Assume everyone pays by credit card

2) $.90 per postcard if you order 5,000 or more

3) $.89 per postcard for mailing and postage

4) $49 per person for beverages and lunch

5) $35 per person for handouts

Using Excel, create a spreadsheet to calculate your projected total costs, total revenues, and total profits given the preceding information. Be sure to have input cells for any variables that might change, such as the cost of postage, handouts, and so on. Calculate your profits and your hourly wage based on the following number of people attending: 10, 20, 30, 40, 50, 60, and 70.