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Axia College Material

 

Appendix 1 – For Final

 

Phoenix STS Transportation Expenses

 

Expense Category

West Valley

Central Phoenix

East Valley

Totals

Salaries

 $39,000

$117,000

$39,000

$195,000

Fringe Benefits

6,240

18,720

6,240

31,200

Rent

3,000

9,000

3,000

15,000

Utilities

540

1,620

540

2,700

Telephone

600

1,800

600

3,000

Supplies

500

1,500

500

2,500

Vehicle Maintenance

5,200

15,600

5,200

26,000

Vehicle Depreciation

9,600

28,800

9,600

48,000

Other

4,100

12,300

4,100

20,500

Management

16,200

48,600

16,200

81,000

Fund Raising

8,400

25,200

8,400

42,000

Totals

93,380

280,140

93,380

466,900

 

 

 

 

 

Revenue

Category

 

 

 

 

Grant Income

$ 320,000

$ 530,800

$  220,000

1,070,800

Customer Fees

   12,000

    30,000

    9,000

51,000

Other

   89,000

   110,006

  87,000

286,006

Interest

1,500

2,200

1,500

5,200

Totals

422,500

673,006

317,500

1,413,006

 

For Fiscal Year 2008 by Region

 

 

 

Part I.

 

 

 

Calculate the following: Current ratio; long-term solvency ratio; contribution ratio; programs/ expense ratio; revenue and expense ratio for the three regions.

 

 

 

Provide a 200- to 300-word explanation of the importance of these ratios for all three regions listed above.  Include a statement of which region appears to be most financially solvent.

 

 

 

Part II.

 

 

 

        Determine BEP, variable costs and fixed costs using the traditional BEP formula: PX=A + Bx

 

 

 

1:  From this expense sheet select one of the regions to calculate.

 

2.  What are the fixed costs?  What are the variable costs?

 

3.  Information to know: riders pay $20 per round trip ride for transportation service

 

4.  In this exercise, the variable cost per unit (the “Bx” in the equation) will have to be determined.  About 5000 riders per year participate in this program.  Once the variable costs are determined from the worksheet, divide that number by the number of riders.

 

5.  How many riders will be necessary for that area of the Phoenix STS Transport Co. to break even?

 

REMEMBER:  SHOW ALL OF THE WORK!  ALL OF THE NUMBERS, TOTALS AND CALCULATIONS MUST BE SHOWN TO GET FULL CREDIT.  ANSWER EACH OF THE FIVE STEPS ABOVE.

 

 

 

 

 

Part III

 

 

 

        Create a fund develop strategy plan for the Phoenix Agency using several of the fund raising approaches described in the textbook. 

 

·         Begin by developing the leadership hierarchy (Executive Director, Administration and Board of Directors).

 

·         Would United Way Membership be sought?  What needs to be accomplished for United Way membership?

 

·         Describe, in great detail, what activities, events,  approaches your plan would involve.  How many people will be involved?  How will it be publicized?  What are the fundraising expenses (using the fund-raising/expense ratio)?  If the agency participates in special events, how much will the tickets cost?  Use the BEP calculations to determine BEP and ticket prices.  

 

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