Real-Life Math -- Solution
Before you can get a picture of what the budget for the largest
event looks like, you have to determine how much you have to spend on that
event. The overall budget will be 15 percent of $800,000.
$800,000
x 0.15 = $120,000
You have $120,000 to spend on
the event.
Now, in order to determine how that breaks down into the
different percentages for the different aspects of the event, you must use
that same process for each category, substituting $120,000 for $800,000.
Your
budget breaks down like this:
25 percent for food
$120,000
x 0.25 = $30,000
37 percent for advertising
$120,000 x
0.37 = $44,400
18 percent for facilities and equipment
$120,000
x 0.18 = $21,600
10 percent for labor
$120,000 x 0.10
= $12,000
10 percent for miscellaneous expenses
$120,000
x 0.10 = $12,000
The budget that you have to work
with for the largest fund-raising event of the year will look like this:
Food
-- $30,000
Advertising -- $44,400
Facilities and equipment -- $21,600
Labor
-- $12,000
Miscellaneous -- $12,000
Total budget - $120,000
Gary
Wyant is a senior associate athletic director at a university. He handles
all the budgeting for the athletics department. From construction budgets
to departmental budgets, he does it all. "In today's athletic industry,
the financial part of the business is imperative," he says.