P6 (Part 1)
Financial plan and budget
5-A-Side Tournament Budget
Cost per team: £10 x (8 teams: £80)
Cost of the event: £20 approximately
In order to see if we will make a profit or loss: Total Revenue – Total Costs
TR: £80
TC: £20
Profit/Loss: £80 - £20 = £60
We estimate that we will make a profit of £60.
We have predicted our revenue based on the fact that tickets cost £2 and we have said that in order
for a team to play must have 5 players (plus 2 subs if they want). We were doing this event for the Y7
in the school and there are 8 groups, so we have predicted minimum revenue of £80, and a total cost
of £20.
Actual Finances
We had free fixed costs thanks to the PE department and we predicted a Variable Cost of
approximately £20. As we can see, our actual variable cost was of £16, which was as well our Total
Cost. As we had 8 teams and we set up a rule of minimum 5 players per team our expectations were
to get at least £80 of revenue and we overcame that by getting £84 of revenue.
Finally, we calculated our profit where we set up a SMART TARGET of at least of £40, but our
predicted profit was of £60. We did a profit of £64 overpassing our expectations.