Fee Setting
Fee Setting Assignment
Candace Fralix
February 18, 2011
HSM/260
Proposed Seminar Budget
1. Conference room rental $175.00 $ 175.00
2. Audiovisual equipment Rental 75.00
3. 4 presenters @ $500 2,000.00
4. 45 workbooks @ $15 675.00
5. 45 lunches @ $12 540.00
6. 45 coffees @ $3.50 158.00
Subtotal $3,623.00
7. Indirect costs @ 25% of $3,675.00 $ 906.00
Subtotal $4,529.00
8. Profit margin @ 5% of $4,594.00 $ 227.00
Total $4,756.00
Fixed Cost
Conference room rental $175.00
Audiovisual equipment rental $75.00
4 Presenters @ $500.00 $2,000
Indirect Cost @25% of $3,675 $906.00
Profit Margin @5% of $4,594 $227.00 Total Fixed Cost $3,383.00
Variable Cost
45 Workbooks @ $15.00 $675.00
45 Lunches @ $12.00 $540.00
45 Coffees @ $3.50 $157.50 Total Variable Cost $1372.50
My Break-Even point and go/no go decision is set at 30 participants. It is set lower so that if we exceed more than thirty participants then the rest would be a profit.
Break-Even Point
XP= A+BX
30P= $3,383+$1372.50
30P=$3,383+$41,175
30P=$44,558
P=$1485.26
The fee is still within the standard bracket.
Exercise 11.2
Fees setting based on the following costs:
Direct cost will comprise of
Fixed direct costs
Human resource cost (Trainer Cost)
($ 200 per hr and if seminar is 8 hr then total per day) = $1,600
Other fixed direct costs = $400
Variable direct costs
Material cost (If books are given to each participant) = $10
Other Miscellaneous variable direct costs = $5
Indirect cost will comprise of
Fixed indirect costs (per Day)
Depreciation = 274
Rent = 100
Other fixed indirect costs = 300
Variable Indirect costs (per participants)
Miscellaneous variable direct costs = 5
Total Variable Costs (per participants)
Material Cost $10.00
Other Miscellaneous Variable Direct Cost $5.00
Miscellaneous Variable Direct Cost $5.00
Total Variable Cost= $20.00
Total Fixed Cost
Human Resource Cost
Candace Fralix
February 18, 2011
HSM/260
Proposed Seminar Budget
1. Conference room rental $175.00 $ 175.00
2. Audiovisual equipment Rental 75.00
3. 4 presenters @ $500 2,000.00
4. 45 workbooks @ $15 675.00
5. 45 lunches @ $12 540.00
6. 45 coffees @ $3.50 158.00
Subtotal $3,623.00
7. Indirect costs @ 25% of $3,675.00 $ 906.00
Subtotal $4,529.00
8. Profit margin @ 5% of $4,594.00 $ 227.00
Total $4,756.00
Fixed Cost
Conference room rental $175.00
Audiovisual equipment rental $75.00
4 Presenters @ $500.00 $2,000
Indirect Cost @25% of $3,675 $906.00
Profit Margin @5% of $4,594 $227.00 Total Fixed Cost $3,383.00
Variable Cost
45 Workbooks @ $15.00 $675.00
45 Lunches @ $12.00 $540.00
45 Coffees @ $3.50 $157.50 Total Variable Cost $1372.50
My Break-Even point and go/no go decision is set at 30 participants. It is set lower so that if we exceed more than thirty participants then the rest would be a profit.
Break-Even Point
XP= A+BX
30P= $3,383+$1372.50
30P=$3,383+$41,175
30P=$44,558
P=$1485.26
The fee is still within the standard bracket.
Exercise 11.2
Fees setting based on the following costs:
Direct cost will comprise of
Fixed direct costs
Human resource cost (Trainer Cost)
($ 200 per hr and if seminar is 8 hr then total per day) = $1,600
Other fixed direct costs = $400
Variable direct costs
Material cost (If books are given to each participant) = $10
Other Miscellaneous variable direct costs = $5
Indirect cost will comprise of
Fixed indirect costs (per Day)
Depreciation = 274
Rent = 100
Other fixed indirect costs = 300
Variable Indirect costs (per participants)
Miscellaneous variable direct costs = 5
Total Variable Costs (per participants)
Material Cost $10.00
Other Miscellaneous Variable Direct Cost $5.00
Miscellaneous Variable Direct Cost $5.00
Total Variable Cost= $20.00
Total Fixed Cost
Human Resource Cost