Real-Life Math
Planners are called upon to use all sorts of math skills.
"Besides
having to have a solid understanding of accounting and financial management
procedures, meeting planners would use math in the following areas," says
Ted Wykes, a meeting and event planning professor.
- Calculating percentages
- Measuring areas -- determining the square footage of a room
- Measuring volume -- number of cups of coffee in 10 litres
- Calculating interest rates
- Calculating fractions
- Determining averages, medians and modes
- Doing break-even analysis
- Doing metric conversions
- Determining gratuities
- Determining correct screen size and placement for audio-video presentations
- Calculating no-show factors
When and where a planner would use these skills depends on the event
they're organizing.
A stockbroker has approached you about organizing
a one-day seminar for her customers. She wants you to provide her with a budget
before she decides whether to schedule the seminar. If she has to charge more
than $50 per person, she won't hold the seminar.
She's asked you to
include your fees in the budget. Most planners set their fees by charging
a certain amount per delegate attending. In this way, your fee is a surcharge
on the other costs of attending, like room rental and food.
Usually,
the event planner's fee is calculated as a percentage of the total bill for
the event. Based upon past experience, you estimate your fee to be 10 per
cent of the fee per person.
(Some planners earn income in other ways.
They charge a commission to their suppliers, or "vendors." For example, they
may charge the hotel a percentage of the total bill for room rental and food
on the grounds it was the planner who brought the hotel the business in the
first place.)
The stockbroker estimates that 35 of her customers will
participate in the seminar. After some research, you've come up with these
numbers:
| Food and beverage | $12.50 per person |
| Meeting room rental fee | $350 |
| Printing and copying (estimated) | $195 |
| Speaker's fee | $275 |
| Miscellaneous costs (estimated) | $165 |
From this, calculate the total budget for the seminar,
your pay rate and the registration cost per person.
Will your stockbroker
client hold the seminar?