# budget committee for formal Valentines Day Ball

You are on the budget committee for a formal Valentine’s Day Ball at your university. The ball includes dinner and dancing. Your committee prepared a tentative budget outlining income and expenses in the attached Dance.Xls file.

The primary sources of income are contributions from student organizations and ticket prices. Expenses include the actual cost of the dinner, facilities, parking, and other costs at a luxurious hotel in the city. Your goal is to balance the income and expenses, decide on the most appropriate ticket price per student, and ensure your budget falls within the limitations you must work with.

a)      Currently, the estimated budget has a deficit. Use Goal Seek to achieve a \$0 balance by changing the ticket price per person. Answer question 1 on the Q&A worksheet.

b)     You believe that between 200 and 500 students will attend. Because the ticket revenue, chair setup, catering cost, and valet parking expenses are dependent on the number of students, you decide to create a one-variable data table to compare the budget effects based on a different numbers of students attending.

Complete the one-variable data table. There are four columns: # Attend, Total Revenue, Total Expenses, and Balance. In the first column, enter the series of substitution values ranging from 200 to 500 at increments of 20 students. Enter references to the total revenue, total expenses, and balance formulas in the correct location for the one-variable data table. Complete the one-variable data table and answer questions 2 through 4 on the Q&A worksheet.

c)      Now you want to compare the balance of different combinations of attendees and ticket prices per person using a two-variable data table. Using the same series of substitution values for # Attend from the one-variable data table.

Enter the series of substitution values for ticket price from \$50 to \$100 at \$10 increments. Enter the reference to the total income formula in the correct location for the two-variable data tables. Complete the two-variable data table and answer questions 5 and 6 on the Q&A worksheet. Question 6 requires three combinations to list.

d)    You negotiated different cost per meal and ballroom rental rates based on 500, 400, 300, or 200 attendees. You estimated tentative ticket prices per attendee. You use Scenario Manager to help you decide the target number of attendees. Create a first scenario named 500 Attend, using the number of attendees, meal cost per person, ticket price per person, and ballroom rental variables as the changing cells.

Enter these values for the first scenario: 500, 15.95, 75, and 12500. Create a second scenario named 400 Attend, using the same changing cells, entering these values for the second scenario: 400, 17.95, 85, and 12500.

Create a third scenario named 300 Attend, using the same changing cells, entering these values for the third scenario: 300, 19.95, 90, and 11995. Create a fourth scenario named 200 Attend, using the same changing cells, entering these values for the fourth scenario: 200, 22.95, 95, and 11995. Generate a scenario summary report using the total revenue, total expenses, and balance as the results, and then answer questions 7 through 9 on the Q&A worksheet.

e)      Save the workbook.

Valentine’s Day Ball

Input Section

No. of Attendees

% Attendees Using Valet

Cost per Chair Setup

Valet Parking per Car

Caterer’s Meal Cost per Person

Ticket Price per Person

400

50%

2.00

19.95

20.95

75.00

Limitations

Maximum Attendees

Maximum Parking Stalls

Minimum Ticket Price

Maximum Ticket Price

\$500

240

50.00

100.00

Income

Student Club Contributions

\$8,500

Ticket Revenue

Total Income

Expenses

Ballroom Rental

Chairs/Table Setup

Valet Parking

Decorations

DJ Cost

Cleanup Costs

Meal Cost

Contingency

Total Expenses

Balance

30,000

\$38,500

\$ 44,090

\$(5,590)

3,345

12,500

800

3,990

4,575

3,000

2,500

8,380

5,000

One-Variable Data Table: Attendees

# Attend Two-Variable Data Table: Attendees and Price Per Ticket

Question

1) What is the ticket price per person to balance the initial budget using Goal Seek?

2) For the one-variable data table, how many attendees create the largest deficit?

3) For the one-variable data table, what is the largest deficit?

4) For the one-variable data table, how many attendees create a break-even point?

5) For the two-variable data table, what ticket prices do not produce a break-even point?

6) For the two-variable data table, list the combination of ticket prices and attendees?

7) For the scenario summary, which scenario provides the highest positive balance and by what

amount?

8) For the scenario summary, which scenario provides a negative balance? What is the balance?

9) Is this balance close enough that you might achieve break-even? How is this possible?