Audrey Hollingsworth, director of the Pacific Park School (PPS), was making the final revisions to her budget for the school’s summer camp program, which began in six months. She knew that she needed to set fees and control expenses in such a way that the program would generate a surplus of $6,000.  The surplus would be used to make some much needed improvements to the school’s playground facilities, which her board had instructed her to make prior to the beginning of September, when the next school year began.

Assignment

1.Use the data given in the case to prepare a budget for the summer camp program.  You should set up this budget on a spreadsheet to assist you in answering Question 2.

2.If you prepare the budget properly, it will show a surplus of $6,100.  Do you think this is attainable?  Where does the budget look “soft?”

3.Assume that Ms. Hollingsworth learned that the improvements to the playground would cost $8,000 instead of $6,000.  Where would you adjust the budget to obtain the additional $2,000 surplus?