The company has had a total revenue shortfall of 5% so far this year (you are 6 months in). The problem is not expected to get better and may get worse. Because of this, you are required to submit a new budget immediately which reduces your bottom line spending for the next 6 months.

Open the excel spreadsheet (in excel).

Assume your budget for June is the same in every month (for July and to the end of the year). Add columns July to December, and then figure out how total 6 month spending of your department will goes down by 10% by the end of the year. Fill in your excel spreadsheet to make it happen and have a column which shows the new 6 month totals for each category.

If called upon in class, you should be able to justify your decisions. Just reducing everything by 10% will get you fired.

Scenario 2: In this scenario, the company actually did very well in the first 6 months of 2023. For 2024, customer acquisition is expected to be UP by 10% . Take just the left column (categories) and the last column (total spending for 2023) and create a new, proposed budget for next year (12 months of 2024). Add just one column, which is your total 12 months of spending for each category.

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C DE F Department Budget Report G Month is June 2023. YTD is all months beginning January 1 2023 A B 1 2 3 Month YTD Variance: Variance: 4 Customer Service Budget Actual 5 Payroll Expenses 120,000.00 115,000.00 6 7 Payroll Employee Bonus 1,000.00 1,000.00 B/W) 5,000.00 0.00 Budget Actual B/W) 720,000.00 710,000.00 10,000.00 6.000.00 5,000.00 1,000.00 Employee Overtime 1,500.00 5,000.00 8 Total Payroll 122,500.00 121,000.00 (3,500.00) 1,500.00 9,000.00 28,500.00 735,000.00 743,500.00 (19,500.00) (8,500.00) 9 10 Fringe Benefits 300.00 350.00 (50.00) 1,800.00 1,500.00 300.00 11 12 Fringe Refreshments/Soda/etc. 50.00 70.00 (20.00) 300.00 150.00 150.00 Employee Appreciation 100.00 250.00 (150.00) 600.00 400.00 200.00 13 Total Fringes 450.00 670.00 (220.00) 2,700.00 2,050.00 650.00 14 15 Meals 100.00 70.00 30.00 600.00 700.00 (100.00) 16 17 18 Travel Hotel 250.00 200.00 50.00 1,500.00 1,400.00 100.00 Auto Rental 150.00 125.00 25.00 900.00 800.00 100.00 Airfare,, etc 500.00 19 Total Travel 1,000.00 750.00 (250.00) 1,145.00 (145.00) 3,000.00 7,200.00 (4,200.00) 6,000.00 10,100.00 (4,100.00) 20 21 22 23 24 Pro Service Recruiting Fees 750.00 800.00 Professional Fees 200.00 100.00 (50.00) 100.00 4,500.00 4,700.00 (200.00) 1,200.00 700.00 500.00 Legal Fees 75.00 0.00 75.00 450.00 100.00 350.00 Total Professional Fees 1,025.00 900.00 125.00 6,150.00 5,500.00 650.00 25 26 Employee Training 400.00 500.00 (100.00) 2,400.00 3,000.00 (600.00) 27 Miscellaneous Expense 200.00 150.00 50.00 1,200.00 1,500.00 (300.00) 28 Project Materials 100.00 250.00 (150.00) 600.00 400.00 200.00 29 Equipment Rental 50.00 0.00 50.00 300.00 0.00 300.00 30 Postage and Delivery 50.00 45.00 5.00 31 32 General Software License Fees 800.00 800.00 0.00 300.00 4,800.00 5,000.00 270.00 30.00 (200.00) Outside Services - Other 100.00 50.00 50.00 600.00 500.00 100.00 33 Telephone 200.00 200.00 0.00 1,200.00 1,200.00 0.00 34 Cellphone 200.00 200.00 0.00 1,200.00 1,200.00 0.00 35 Utilities 300.00 300.00 0.00 1,800.00 1,800.00 0.00 36 Supplies 37 Total General 100.00 2,500.00 150.00 (50.00) 2.645.00 (145.00) 600.00 15,000.00 700.00 15,570.00 (100.00) (570.00) 38 39 40 Total Operating Expenses 127,475.00 126,360.00 1,115.00 764,850.00 776,720.00 (11,870.00) C DE F Department Budget Report G Month is June 2023. YTD is all months beginning January 1 2023 A B 1 2 3 Month YTD Variance: Variance: 4 Customer Service Budget Actual 5 Payroll Expenses 120,000.00 115,000.00 6 7 Payroll Employee Bonus 1,000.00 1,000.00 B/W) 5,000.00 0.00 Budget Actual B/W) 720,000.00 710,000.00 10,000.00 6.000.00 5,000.00 1,000.00 Employee Overtime 1,500.00 5,000.00 8 Total Payroll 122,500.00 121,000.00 (3,500.00) 1,500.00 9,000.00 28,500.00 735,000.00 743,500.00 (19,500.00) (8,500.00) 9 10 Fringe Benefits 300.00 350.00 (50.00) 1,800.00 1,500.00 300.00 11 12 Fringe Refreshments/Soda/etc. 50.00 70.00 (20.00) 300.00 150.00 150.00 Employee Appreciation 100.00 250.00 (150.00) 600.00 400.00 200.00 13 Total Fringes 450.00 670.00 (220.00) 2,700.00 2,050.00 650.00 14 15 Meals 100.00 70.00 30.00 600.00 700.00 (100.00) 16 17 18 Travel Hotel 250.00 200.00 50.00 1,500.00 1,400.00 100.00 Auto Rental 150.00 125.00 25.00 900.00 800.00 100.00 Airfare,, etc 500.00 19 Total Travel 1,000.00 750.00 (250.00) 1,145.00 (145.00) 3,000.00 7,200.00 (4,200.00) 6,000.00 10,100.00 (4,100.00) 20 21 22 23 24 Pro Service Recruiting Fees 750.00 800.00 Professional Fees 200.00 100.00 (50.00) 100.00 4,500.00 4,700.00 (200.00) 1,200.00 700.00 500.00 Legal Fees 75.00 0.00 75.00 450.00 100.00 350.00 Total Professional Fees 1,025.00 900.00 125.00 6,150.00 5,500.00 650.00 25 26 Employee Training 400.00 500.00 (100.00) 2,400.00 3,000.00 (600.00) 27 Miscellaneous Expense 200.00 150.00 50.00 1,200.00 1,500.00 (300.00) 28 Project Materials 100.00 250.00 (150.00) 600.00 400.00 200.00 29 Equipment Rental 50.00 0.00 50.00 300.00 0.00 300.00 30 Postage and Delivery 50.00 45.00 5.00 31 32 General Software License Fees 800.00 800.00 0.00 300.00 4,800.00 5,000.00 270.00 30.00 (200.00) Outside Services - Other 100.00 50.00 50.00 600.00 500.00 100.00 33 Telephone 200.00 200.00 0.00 1,200.00 1,200.00 0.00 34 Cellphone 200.00 200.00 0.00 1,200.00 1,200.00 0.00 35 Utilities 300.00 300.00 0.00 1,800.00 1,800.00 0.00 36 Supplies 37 Total General 100.00 2,500.00 150.00 (50.00) 2.645.00 (145.00) 600.00 15,000.00 700.00 15,570.00 (100.00) (570.00) 38 39 40 Total Operating Expenses 127,475.00 126,360.00 1,115.00 764,850.00 776,720.00 (11,870.00)