The Redmond Management Association held its annual public relations luncheon in April 2017. Based on the previous year's results the organization allocated $31,760 of its operating budget to cover the cost of the luncheon. To ensure that costs would be appropriately controlled, Molly Hubbard, the treasurer, prepared the following budget for the 2017 luncheor. The budget for the luncheon was based on the following expectations. 1. The meal cost per person was expected to be $13.80. The cost driver for meals was attendance, which was expected to be 1,600 2. Postage was based on $0.84 per invitation and 4,000 invitations were expected to be mailed. The cost driver for postage was 3. The facility charge is $3,000 for a room that will accommodate up to 1,700 people; the charge for one to hold more than 1,700 4. A fixed amount was designated for printing, decorations, the speaker's gift, and publicity individuals. number of invitations mailed people is $3,500 REDMOND MANAGEMENT ASSOCIATION Public Relations Luncheon Budget April 2017 Operating funds allocated Expenses $31,760 Variable costs Meals (1,600 x $13.80) Postage 4,000 x 0.84) Fixed costs Facility Printing Decorations Speaker's gift Publicity 22,080 3,360 3,000 1,150 1,040 330 800 31,760 Total expenses Budget surplus (deficit)