the yellow space
You need forecast how many participants that you can reasonably expect, and use that forecasting to make a decision about how many classes to offer and at what price. Forecast revenues and expenses for the following combinations of scenarios: 20, 40, 60, or 80 classes; and 4, 5 or 6 participants in each dass I have failed in the fied expenses for you already. You fill in the highlighted boxes to determine the various cost scenarios. [I did the 20 dass scenario for you already as an example) 20 disses 60 das Part-Time Salary $25 x 20 = $25 x 60 = $25/class X $500 $1.500 Office Expende $100 $100 $100 $100 Maintenance $1,000 $1,000 $1,000 $1000 Equipment $3,000 $3,000 $3,000 $3,000 Supplies $400 $400 $400 $400 Total Costs Cost per class 6 participants (add up the expenses $ $4.900 (divide total cost by the of classes... in this case 20) $ $245 (this is the cost per person per class if you held 20 classes and had 6 participants You would need to charge this amount to break even). $ $40.84 $ $49.00 5125 5 participants 4 participants S Decide which pricing scenario da utilize and explain it below. Then go back and fill in this information on the revenue side of your program budget worksheet How many participants did you decide to forecast How much ne program? Why did you decide on this particular pricing scenario? Expense Description Amount Full-Time Salary Part-Time Salary S 2.000 Your salary is funded by the department, and is not allocated to individual programs. Your department's Group Fitness program pays instructors $25 per class. You decide to stay consistent with this wage rate. (80*25) You will need to pay a share of revenue to marketing for color toner and fancy poster paper. Your boss mentioned the need for this program to generate revenue for other Natatorium needs. Your net revenue target is $1,000 to will be put towards a badly- needed chlorinator upgrade. Office Expense $_ 100 Maintenance $ 1.000 Equipment You have room in the pool for 6 paddleboards at a time. You're eyeing the NRS Baron 6. They cost $1,000 each. You can pay for half of the cost out of this year's budget, and carry over the other half of the expense into next year. Besides Paddleboards, you need anchors and tether lines to keep boards in place. $ 3.000 Program Supplies TOTAL EXPENSE S 400 $6,500 1. Which expenses are fixed? Maintenance and equipment 2. Which expenses are variable? Office, program supplies Revenue Student Tuition/Fee Allocation Facility Rental Description Amount Your boss is not willing to subsidize this program with student tuition. In fact, she has made it clear that she would like to see this program make profit that can be used for other needs in the Natatorium. You decide to allocate $5,000 of your pool rental income to equipment start-up costs. Your boss has made it clear that you cannot spend any more of the facility rental income on this program. $ 5.000 Campus Recreation charges memberships for faculty/staff and alumni to join the facilities. No membership sales IS revenue is allocated to this program. This particular line item is up to you. You figure that you have the space for up to 80 classes per year. For simplicity's sake, you decide to charge per single class. Membership Sales Program Registration Fees TOTAL REVENUE 50*80 $4,000 1. What are the revenue sources for this program? Facility Rented and program registration fees 2. Which revenue source is fixed? Facility Rented 3. Which revenue source is variable? Program registration fees You need forecast how many participants that you can reasonably expect, and use that forecasting to make a decision about how many classes to offer and at what price. Forecast revenues and expenses for the following combinations of scenarios: 20, 40, 60, or 80 classes; and 4, 5 or 6 participants in each dass I have failed in the fied expenses for you already. You fill in the highlighted boxes to determine the various cost scenarios. [I did the 20 dass scenario for you already as an example) 20 disses 60 das Part-Time Salary $25 x 20 = $25 x 60 = $25/class X $500 $1.500 Office Expende $100 $100 $100 $100 Maintenance $1,000 $1,000 $1,000 $1000 Equipment $3,000 $3,000 $3,000 $3,000 Supplies $400 $400 $400 $400 Total Costs Cost per class 6 participants (add up the expenses $ $4.900 (divide total cost by the of classes... in this case 20) $ $245 (this is the cost per person per class if you held 20 classes and had 6 participants You would need to charge this amount to break even). $ $40.84 $ $49.00 5125 5 participants 4 participants S Decide which pricing scenario da utilize and explain it below. Then go back and fill in this information on the revenue side of your program budget worksheet How many participants did you decide to forecast How much ne program? Why did you decide on this particular pricing scenario? Expense Description Amount Full-Time Salary Part-Time Salary S 2.000 Your salary is funded by the department, and is not allocated to individual programs. Your department's Group Fitness program pays instructors $25 per class. You decide to stay consistent with this wage rate. (80*25) You will need to pay a share of revenue to marketing for color toner and fancy poster paper. Your boss mentioned the need for this program to generate revenue for other Natatorium needs. Your net revenue target is $1,000 to will be put towards a badly- needed chlorinator upgrade. Office Expense $_ 100 Maintenance $ 1.000 Equipment You have room in the pool for 6 paddleboards at a time. You're eyeing the NRS Baron 6. They cost $1,000 each. You can pay for half of the cost out of this year's budget, and carry over the other half of the expense into next year. Besides Paddleboards, you need anchors and tether lines to keep boards in place. $ 3.000 Program Supplies TOTAL EXPENSE S 400 $6,500 1. Which expenses are fixed? Maintenance and equipment 2. Which expenses are variable? Office, program supplies Revenue Student Tuition/Fee Allocation Facility Rental Description Amount Your boss is not willing to subsidize this program with student tuition. In fact, she has made it clear that she would like to see this program make profit that can be used for other needs in the Natatorium. You decide to allocate $5,000 of your pool rental income to equipment start-up costs. Your boss has made it clear that you cannot spend any more of the facility rental income on this program. $ 5.000 Campus Recreation charges memberships for faculty/staff and alumni to join the facilities. No membership sales IS revenue is allocated to this program. This particular line item is up to you. You figure that you have the space for up to 80 classes per year. For simplicity's sake, you decide to charge per single class. Membership Sales Program Registration Fees TOTAL REVENUE 50*80 $4,000 1. What are the revenue sources for this program? Facility Rented and program registration fees 2. Which revenue source is fixed? Facility Rented 3. Which revenue source is variable? Program registration fees
