Garner Strategy Institute (GSI) presents executive-level training seminars nationally. Eastern University (EU) has approached GSI...

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Garner Strategy Institute (GSI) presents executive-level training seminars nationally. Eastern University (EU) has approached GSI to present 40 one-week seminars during 20X1. This activity level represents the maximum number of seminars that GSI is capable of presenting annually. GSI staff would present the week-long seminars in various cities throughout the United States and Canada.
Terry Garner, GSIs president, is evaluating three financial options for the revenues from Eastern: accept a flat fee for each seminar, receive a percentage of Easterns profit before tax from the seminars, and form a joint venture to share costs and profits.
Estimated costs for the 20X1 seminar schedule follow:
Garner Strategy InstituteEastern UniversityFixed costs for the year:Salaries and benefits$ 210,000N/A*footnote asteriskFacilities58,000N/A*footnote asteriskTravel and hotel0$ 329,220Other50,000N/A*footnote asteriskTotal fixed costs$ 318,000$ 329,220Variable cost per participant:Supplies and materials0$ 47Marketing018Other site costs035

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