Resource:Ch. 11 in Financial Management

Fee Setting

Need Help Writing an Essay?

Tell us about your assignment and we will find the best writer for your paper.

Write My Essay For Me

CompleteExercises 11.1 & 11.2 on pp. 158–159.

Determinethe most important issues for a human service agency to address in fee setting.

Determinethe issues that are least important.

Justifyyour answers.

Postyour answers as a Microsoft^®Word attachment

Question Exercise 11.1

The child and family government benefits seminar was such a success that Advocates

for Children will conduct a second seminar in an adjoining community. The

executive director decides that this second seminar will attempt to maximize revenues.

Consequently, no reduced fee schedule will be offered. All trainees will pay

the full seminar fee. The seminar will take place in a smaller conference room than

the earlier one. The room can only accommodate a maximum of 45 trainees. Here

is the proposed budget for the seminar:

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

You are the executive director. Following the checklist in Figure 11.1, perform

all the computations necessary to set a fee. What will your fee be? What is your

break-even point? What is your go/no-go decision point

Question Exercise 11.2

As the executive director of Advocates for Children, you have had a change of

heart. You decide not to attempt to maximize revenues in this second seminar. You

decide to exclude a profit margin in the fee computation, but you will include indirect

costs. Additionally, the local United Way in the community hosting the seminar

has guaranteed 45 participants. If fewer than 45 participants register for the

seminar, the United Way will make up the difference. In exchange for this guarantee,

the United Way has asked you to set the seminar fee as low as possible. Following

the checklist in Figure 11.1, perform all the computations necessary to set a

fee. What will your fee be?