BASIC BUDGET

REVENUE # Unit Price Totals

Registration 800 $378.50 $302,800.00
Exhibit Sq. Feet 5,000 $30.00 $150,000.00
Sponsorship $50,000.00 $50,000.00
TOTAL REVENUE $502,800.00
FIXED EXPENSES Basic Budget
AV & PC Rental/Labor $ 62,000.00
Buses $ 7,500.00
This workbook is designed to provide the meeting
professional the ability to calculate registration
Convention Staff Salaries $ 8,000.00
revenues, based on the Break Even Analysis model.
Decorations $ 6,000.00
This model is used throughout the industry, and is
Decorator $ 15,000.00
recognized as the method to determine registration
Entertainment $ 6,000.00
fees when sitting for the CMP (Certified Meeting
Flowers/Plants $ 800.00
Professional) exam.
Internet & Networking $ 8,000.00
Lead Retrieval $ 5,000.00 This is the Basic Budget, from which all calculations
Meeting Room Rental $ 10,000.00 are derived. The second worksheet, Break Even
Microphones $ 4,500.00 Analysis, will discuss how these formulas work, as
Miscellaneous $ 1,000.00 well as provide information about the four budget
Photocopies $ 1,000.00 worksheets that follow.
Photographer $ 2,000.00
Security $ 2,500.00 The last worksheet, Quick Calculator, is designed to
Signage $ 6,000.00 provide a quick calculation for those who know their
Stage Set $ 10,000.00 budget numbers.
Telephone $ 5,500.00
Trucking/Shipping $ 2,000.00 Notice that the key cells from each spreadsheet are
TOTAL FIXED EXPENSES $ 162,800.00 highlighted, so that the planner can clearly see from
VARIABLE EXPENSES Attn. Cost/Pp Totals where the data is taken.
Sunday Reception 800 $55.00 $44,000.00
Monday Continental Bkfst 800 $20.00 $16,000.00
Monday AM Break 800 $14.00 $11,200.00
Monday Lunch 800 $45.00 $36,000.00
Monday PM Break 800 $12.00 $9,600.00
Monday Reception 800 $40.00 $32,000.00 Critical budget information on each worksheet is
Tuesday Continental Bkfst 800 $20.00 $16,000.00 identified with text formatting similar to this text box.
Tuesday AM Break 800 $14.00 $11,200.00 Blue text, yellow background and bold are used to
Tuesday Lunch 800 $45.00 $36,000.00 indicate the formula components that need to be
Tuesday PM Break 800 $12.00 $9,600.00 used.
Tuesday Banquet 800 $100.00 $80,000.00
Wednesday Continental Bkfast 800 $20.00 $16,000.00
Wednesday Brunch 800 $28.00 $22,400.00
TOTAL VARIABLE EXPENSES $340,000.00
VARIABLE COSTS/PERSON $425.00
TOTAL EXPENSES $502,800.00
TOTAL REVENUE $502,800.00
PROFIT - LOSS $0.00
 Break Even Analysis
Break Even Analysis is a method by which meeting organizers can determine at which poin
There are a number of ways that a planner can use this tool. They can use it to:

■ Determine registration fees required to break even

■ Determine registration fees required to produce a desired profit margin
■ Estimate attendance required to cover costs based on pre-determined registration fee.

The Break Even Price formula is given below. In order to use the formula, three pieces of
be able to establish a registration fee:

► Total Fixed Expenses

► Anticipated Number of Attendees
► Variable Costs. This is the sum of the per person variable expenses from the budget.

Total Fixed Expenses

Break Even Price = -------------------------------- + Variable Costs
Number of Attendees

The most critical part of working with this formula on any budget is to separate fixed from v
stated, variable expenses are those which fluctuate with the changing number of attendees
variable expenses reflect food & beverage events, where a per person cost is charged.

This spreadsheet will use the BasicBudget worksheet as a standard budget for this meetin
worksheets are contained, each one showing how the Break Even Analysis works. The fou

► Registration Fee Only Additional Tool - QuickCal

► Adding Extra Revenue provides a quick calculatio
► Budgeting for Desired Profit Margin determining the appropria
enter the numbers, and se
► Working with Varied Guarantee Numbers fee.
 REGISTRATION FEE ONLY
REVENUE # Unit Price Totals
Registration 800 $0.00
TOTAL REVENUE $0.00
FIXED EXPENSES
AV & PC Rental/Labor $ 62,000.00
Buses $ 7,500.00
Registration Fee Only
Convention Staff Salaries $ 8,000.00
Decorations $ 6,000.00
Decorator $ 15,000.00 No other sources of revenue (e.g. exhibit fees,
Entertainment $ 6,000.00 sponsorship) are added to the budget. The three
Flowers/Plants $ 800.00 elements for this budget are:
Internet & Networking $ 8,000.00
Lead Retrieval $ 5,000.00 Total Fixed Expenses - $162,800
Meeting Room Rental $ 10,000.00 Number of Attendees - 800
Microphones $ 4,500.00
Total Variable Cost/Pp - $425
Miscellaneous $ 1,000.00
Photocopies $ 1,000.00
Photographer $ 2,000.00
Security $ 2,500.00
Signage $ 6,000.00 The Formula
Stage Set $ 10,000.00
Telephone $ 5,500.00 Total Fixed Expenses
Trucking/Shipping $ 2,000.00 Break Even Price = ------------------------------+ Variable Costs
TOTAL FIXED EXPENSES $ 162,800.00 Number of Attendees
VARIABLE EXPENSES Attn. Cost/Pp Totals
Sunday Reception 800 $55.00 $44,000.00
Monday Continental Bkfst 800 $20.00 $16,000.00
Monday AM Break 800 $14.00 $11,200.00
Monday Lunch 800 $45.00 $36,000.00 $162,800
Monday PM Break 800 $12.00 $9,600.00 B.E.P. = --------------------------------+ $425
Monday Reception 800 $40.00 $32,000.00 800
Tuesday Continental Bkfst 800 $20.00 $16,000.00
Tuesday AM Break 800 $14.00 $11,200.00
Tuesday Lunch 800 $45.00 $36,000.00
Tuesday PM Break 800 $12.00 $9,600.00 Break Even Price = $628.50
Tuesday Banquet 800 $100.00 $80,000.00
Wednesday Continental Bkfast 800 $20.00 $16,000.00
Enter this amount into cell C4 (Registration Fee). It
Wednesday Brunch 800 $28.00 $22,400.00
TOTAL VARIABLE EXPENSES $340,000.00
will completely balance the Profit Loss cell (D48).
VARIABLE COSTS/PERSON $425.00

TOTAL EXPENSES $502,800.00

TOTAL REVENUE $0.00
PROFIT - LOSS -$502,800.00
 EXTRA REVENUE MODEL
REVENUE # Unit Price Totals
Registration 800 $0.00
Exhibit Sq. Feet 5000 $30.00 $150,000.00
Sponsorship $50,000.00 $50,000.00
TOTAL REVENUE $200,000.00
Extra Revenue Model
FIXED EXPENSES
AV & PC Rental/Labor $ 62,000.00
Buses $ 7,500.00 In this variation, the planner needs to integrate anticipated
Convention Staff Salaries $ 8,000.00
sponsorship revenue and exhibit square footage revenue in
order to establish the registration fee. One more
Decorations $ 6,000.00
component is required in this calculation, the total additional
Decorator $ 15,000.00
revenue
Entertainment $ 6,000.00
Flowers/Plants $ 800.00 Total Fixed Expenses (TFE) - $162,800
Internet & Networking $ 8,000.00 Number of Attendees - 800
Lead Retrieval $ 5,000.00 Total Variable Cost/Pp - $425
Meeting Room Rental $ 10,000.00 Total Additional Revenue (TAR) - $200,000
Microphones $ 4,500.00
Miscellaneous $ 1,000.00 In order to make this work, the planner must subtract the
Photocopies $ 1,000.00 total additional revenue from the Total Fixed Expenses.
Photographer $ 2,000.00 This may result in a negative number in the numerator,
Security $ 2,500.00 which is OK.
Signage $ 6,000.00
Stage Set $ 10,000.00
Telephone $ 5,500.00 TFE - TAR
Trucking/Shipping $ 2,000.00 Break Even Price = ------------------------------+ Variable Costs
TOTAL FIXED EXPENSES $ 162,800.00 Number of Attendees
VARIABLE EXPENSES Attn. Cost/Pp Totals
Sunday Reception 800 $55.00 $44,000.00
Monday Continental Bkfst 800 $20.00 $16,000.00
$162,800 - $200,000
B.E.P. = --------------------------------+ $425
Monday AM Break 800 $14.00 $11,200.00
800
Monday Lunch 800 $45.00 $36,000.00
Monday PM Break 800 $12.00 $9,600.00 B.E.P. = -$37,200
Monday Reception 800 $40.00 $32,000.00 --------------------------------- +$425
Tuesday Continental Bkfst 800 $20.00 $16,000.00 800
Tuesday AM Break 800 $14.00 $11,200.00
Tuesday Lunch 800 $45.00 $36,000.00 B.E.P. = -$46.50 + $425
Tuesday PM Break 800 $12.00 $9,600.00
Tuesday Banquet 800 $100.00 $80,000.00
Wednesday Continental Bkfast 800 $20.00 $16,000.00 Break Even Price = $378.50
Wednesday Brunch 800 $28.00 $22,400.00
TOTAL VARIABLE EXPENSES $340,000.00 Note that in this budget there are 2 lines of additional revenue
VARIABLE COSTS/PERSON $425.00 (exhibit square feet and sponsorship). Any/all additional
TOTAL EXPENSES $502,800.00 revenues must be tallied here in order to allow this formula to
work properly.
 Note that in this budget there are 2 lines of additional revenue
(exhibit square feet and sponsorship). Any/all additional
revenues must be tallied here in order to allow this formula to
TOTAL REVENUE $200,000.00 work properly.
PROFIT - LOSS -$302,800.00
 PROFIT MARGIN
REVENUE # Unit Price Totals
Registration 800 $0.00
Exhibit Sq. Feet 5000 $30.00 $150,000.00
Sponsorship $50,000.00 $50,000.00
TOTAL REVENUE $200,000.00
FIXED EXPENSES Profit Margin Model
AV & PC Rental/Labor $ 62,000.00
Buses $ 7,500.00 In addition to the TAR from the previous example, this
Convention Staff Salaries $ 8,000.00 budget requires a profit to be made from the meeting.
Decorations $ 6,000.00
Decorator $ 15,000.00 Total Fixed Expenses (TFE) - $162,800
Entertainment $ 6,000.00 Number of Attendees - 800
Flowers/Plants $ 800.00 Total Variable Cost/Pp - $425
Internet & Networking $ 8,000.00 Total Additional Revenue (TAR) - $200,000
Desired Profit (Prof) -
Lead Retrieval $ 5,000.00 $250,000
Meeting Room Rental $ 10,000.00 $250,000
In order to make this work, once again the planner must
Microphones $ 4,500.00 factor in this information as part of the TFE-TAR numerator.
Miscellaneous $ 1,000.00
Photocopies $ 1,000.00
Photographer $ 2,000.00
Security $ 2,500.00
Signage $ 6,000.00
TFE - TAR + Prof
Stage Set $ 10,000.00
Break Even Price = -----------------------------+ Variable Costs
Telephone $ 5,500.00 Number of Attendees
Trucking/Shipping $ 2,000.00
TOTAL FIXED EXPENSES $ 162,800.00
VARIABLE EXPENSES Attn. Cost/Pp Totals
Sunday Reception 800 $55.00 $44,000.00 $162,800 - $200,000 + $250,000
Monday Continental Bkfst 800 $20.00 $16,000.00 B.E.P. = -----------------------------------------+ $425
Monday AM Break 800 $14.00 $11,200.00 800
Monday Lunch 800 $45.00 $36,000.00
Monday PM Break 800 $12.00 $9,600.00 B.E.P. = $212,800
Monday Reception 800 $40.00 $32,000.00 --------------------------------- +$425
Tuesday Continental Bkfst 800 $20.00 $16,000.00 800
Tuesday AM Break 800 $14.00 $11,200.00
Tuesday Lunch 800 $45.00 $36,000.00 B.E.P. = $266 + $425
Tuesday PM Break 800 $12.00 $9,600.00
Tuesday Banquet 800 $100.00 $80,000.00
Wednesday Continental Bkfast 800 $20.00 $16,000.00 $250,000 Profit Registration Fee = $691
Wednesday Brunch 800 $28.00 $22,400.00
TOTAL VARIABLE EXPENSES $340,000.00
Once you add the Registration Fee of $691 into
VARIABLE COSTS/PERSON $425.00
TOTAL EXPENSES $502,800.00 cell C4, the Profit/Loss cell (D49) will now reflect a
$250,000 profit, which is what we desired.
 Once you add the Registration Fee of $691 into
cell C4, the Profit/Loss cell (D49) will now reflect a
TOTAL REVENUE $200,000.00 $250,000 profit, which is what we desired.
PROFIT - LOSS -$302,800.00
REVENUE # Unit Price Totals
Registration 800 $562.38 $449,904.00
TOTAL REVENUE $449,904.00
FIXED EXPENSES
AV & PC Rental/Labor $ 62,000.00
Buses $ 7,500.00
Convention Staff Salaries $ 8,000.00
Decorations $ 6,000.00
Decorator $ 15,000.00
Entertainment $ 6,000.00
Flowers/Plants $ 800.00
Internet & Networking $ 8,000.00
Lead Retrieval $ 5,000.00
Meeting Room Rental $ 10,000.00
Microphones $ 4,500.00
Miscellaneous $ 1,000.00
Photocopies $ 1,000.00
Photographer $ 2,000.00
Security $ 2,500.00
Signage $ 6,000.00
Stage Set $ 10,000.00
Telephone $ 5,500.00
Trucking/Shipping $ 2,000.00
TOTAL FIXED EXPENSES $ 162,800.00
VARIABLE EXPENSES Attn. Cost/Pp Totals
Sunday Reception 650 $55.00 $35,750.00
Monday Continental Bkfst 800 $20.00 $16,000.00
Monday AM Break 700 $14.00 $9,800.00
Monday Lunch 750 $45.00 $33,750.00
Monday PM Break 700 $12.00 $8,400.00
Monday Reception 800 $40.00 $32,000.00
Tuesday Continental Bkfst 750 $20.00 $15,000.00
Tuesday AM Break 650 $14.00 $9,100.00
Tuesday Lunch 700 $45.00 $31,500.00
Tuesday PM Break 500 $12.00 $6,000.00
Tuesday Banquet 600 $100.00 $60,000.00
Wednesday Continental Bkfast 650 $20.00 $13,000.00
Wednesday Brunch 600 $28.00 $16,800.00
TOTAL VARIABLE EXPENSES (PrVE) $287,100.00
VARIABLE COSTS/PERSON $425.00
TOTAL EXPENSES $449,900.00
TOTAL REVENUE $449,904.00
PROFIT - LOSS This number replaces the Variable Cost Per $4.00
Person in the Varied Guarantees
Calculation.
 This number replaces the Variable Cost Per
Person in the Varied Guarantees
Calculation.

Steps to Calculate Revised Variable Costs (RevVC)

1 - Determine Variable Expenses for each event, based on the projected event 2 - Determine Variable Expenses for each eve
attendance. These numbers go directly into the budget. In this situation, each estimate. This is the total as if the full group w
event may have a different number of participants. Sum the total of this column this column (FuVE). This column is reflected in
(PrVE).

3 - Subtract FuVE – PrVE. This gives you the 4 - Divide DiffVE/FuVE. This gives you a percentage that
difference between the projected and full you are shaving off of your guarantees by not using the full
attendance (DiffVE). Note that shortcut column H attendance as your base (PctVE).
combines steps 2 and 3 into a single Excel formula.
 Break Even Budget Calculator
Just fill in the blanks, and let the calculators determine your break even (or profit-desired) registration fee.
Only the cells with Yellow background can be edited.

STANDARD CALCULATOR

Total Fixed Expenses $162,800.00

Anticipated Attendees 800 YOUR TARGET REGISTRATION FEE IS: $691.00
Total Variable Cost/Pp $425.00 WITH A PROFIT MARGIN OF: $250,000.00
Total Additional Revenue $200,000.00
Desired Profit $250,000.00

VARIED GUARANTEES CALCULATOR

Total Fixed Expenses $162,800.00

Anticipated Attendees 800 YOUR TARGET REGISTRATION FEE IS: $624.88
Revised Variable Costs $358.88 WITH A PROFIT MARGIN OF: $250,000.00
Total Additional Revenue $200,000.00
Desired Profit $250,000.00