Objective: To create a project cost estimate model for the following case.
Introduction:
Your supervisor has learned of your enrollment in ITMG 494 and would like you to provide some classes or workshops on project management. Your first project is to develop materials, then market and hold your first seminar. You plan to do all of the work within the next six months. You want to create a good cost estimate for this project. Below are some of your initial assumptions.
You will charge $600 per
person for a two-day class (total of 8 hours per day).
Your most-likely estimate of how many people will attend is 30.
Your fixed costs include:
$500 for room rental for both days
$400 for registration set-up fees
$300 for designing a postcard
You estimate that you will spend at least 150 hours developing materials,
managing the project and giving the class.
You plan to order 5,000 postcards, mail 4,000, and distribute the rest to
friends and colleagues.
Your variable costs include:
$5/registration plus 4% of the class fee per person to handle credit card processing.
$.40/postcard if your order 5,000 or more, $.60 if you order fewer
$.25/postcard for mailing and postage
$25/person for beverages and lunch
$30/person for class handouts
Part I
Create an Excel Spreadsheet model to calculate your projected total costs, total revenues, and total profits. Be sure to have input cells for any variables that might change such as cost of postage, handouts, and so on. Use IF statements where appropriate. Also use formatting tools as discussed in class.
Part II
Calculate your profits based
on the following number of people who attend: 10,20,30,40,50, and 60. Use the
Excel scenario summary feature to display the different profits.
You wish to earn of profit of exactly $15,000. Use the Goal Seek feature to determine how many people will need to register in order for you to achieve this amount.