Exercise 2:
Create a spreadsheet to calculate your projected total costs,total revenues, and total profits
for giving a seminar on cost estimating. Make the followingassumptions:
- You will charge $600 per person for a two-day class.
- You estimate that 30 people will attend the class, but you wantto change this input.
- Your fixed costs include $500 total to rent a room for bothdays, setup fees of $400 for
registration, and $300 for designing apostcard for advertising.
- You will not include your labor costs for this estimate, butyou estimate that you will spend at least 150 hours developingmaterials, managing the project, and giving the actual class. Youwould like to know what your time is worth given differentscenarios.
- You will order 5,000 postcards, mail 4,000, and distribute therest to friends and colleagues.
- Your variable costs include the following:
- $5 per person for registration plus four percent of the classfee per person to handle
credit card processing; assume thateveryone pays by credit card
- $0.40 per postcard for printing if you order 5,000 or more
- $0.25 per postcard for mailing and postage
- $25 per person for beverages and lunch
- $30 per person for class handouts
Be sure to have input cells for any variables that might change,such as the cost of postage
and handouts. Calculate your profits based on each of thefollowing numbers of people who
might attend: 10, 20, 30, 40, 50, and 60. In addition, calculatewhat your time would be worth
per hour based on the number of students. Try to use the Exceldata table feature to show
the profits based on the number of students. If you areunfamiliar with data tables, just repeat
the calculations for each possibility of 10, 20, 30, 40, 50, and60 students. Print your results
on one page, highlighting the profits for each scenario and whatyour time is worth.
