Event Budget

You are the newly appointed Director of the E-Games Tournament you have been researching probable
revenues and costs so that you can prepare an Income and Expenditure Forecast.

The event will run over three days (Friday, Saturday and Sunday). The duration of the event will be 8
hours per day and the total number of competitors for the three (3) days will be 256 competitors (128 in
the Mobile Legend Category and 128 in the Call of Duty (COD). The type of event will be a championship
knockout tournament:

Don’t forget that there

is one draw for Mobile
Legends and one draw
for COD.

You have ascertained the following information about probable costs and revenues:

1. Venue Costs

• The venue will cost P300 per day. However, there is an extra cost for lighting and the use of
the venue’s sound system. These costs are as follows:

• The venue lighting cost P10.00 per hour.

• The sound system will cost P60.00 per day

2. Trophies will be awarded as follows:

• Mobile Legend Tournament, 1st place, 2nd place, 3rd place, 4th place, 5th place

• COD Tournament, 1st place, 2nd place, 3rd place, 4th place, 5th place

You are informed that 1st place trophy will cost P50, 2nd place - P40, 3rd place - P30, 4th place -P25 and
5th place -P20.

3. Hospitality for dignitaries and officials will cost P20 per day per person, and the total number of
persons to cater for is expected to be 20 per day.

4. Refereeing costs will be P15 per hour. Each E-Game tournament last 30 mins and will require one
referee only. You will need to work out the total number of games to be played.

5. Printing requirements will be as follows:

• 300 Competition Programs costing P1.00 each

 • 500 Score Cards costing P0.50 each

• 300 Entry Tickets costing P0.50 each

6. Administration and insurance costs are expected to be as follows:

• Postage P150

• Computer Software (Tournament Scheduler) P100

• Mobile and Office Telephone Calls P200

• Stationery P50

• Event insurance P500

7. Advertising and promotion costs will be as follows:

• Newspaper Advertising (2 advertisements at P300 each)

• Posters (100 @ P5 each)

• Bumper Stickers (500 @ P0.50 each)

8. Merchandising

• It is planned to purchase 100 T-shirts and 100 Caps to sell at the event.

• These articles of clothing will have screen printing and embroidery respectively to
commemorate the event.

• T-shirts will cost P15.00 each to purchase and will probably sell for P25.00 each.

• Caps will cost P3.00 each to purchase and will probably sell for P6.00 each.

9. There is a need to purchase a special competition scoreboard that will cost P2,000.

10. An application for a government grant has been successful. The amount of the grant is P3,000.

11. There is a sponsorship contract in place for the competition. The sponsorship amounts to P3,000.

12. As Director, you will have discretion to set a competitor’s entry fee.

YOUR TASK

Your situation is that, as Director, you need to develop a tournament budget on the information you
have so far.

Use MS Excel to develop your budget and display high standards of formatting and lay out in your
answer. A template has been provided for you. ex10_template.xls

When you have completed calculations to work out all known costs and revenues, you will find that
there is insufficient income to cover all costs. You have been given information (on first page) that the
competition has 128 ML and 128 COD. Based on this, work out how much you need to charge each
competitor to:
 1. How much is the cost for the whole event and emphasize also the cost incurred per day.

2. With the above cost how will you gain profit from the event.

3. Approximately break-even

4. Make a P2000 profit overall

-END-