Question 11.RQ.2.11: The following extract is taken from the catering costs budge...

The following extract is taken from the catering costs budget of a company that provides training courses.

Number of delegates                    120                       170
Catering cost                                £1,470                £2,020

In a flexible budget for 185 delegates, the budget cost allowance for catering costs will be £ \boxed{ \ \ \ \ \ \ \ \ \ \ \ \ \ }

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In a flexible budget for 185 delegates the budget cost allowance for catering costs will be £2,185

Delegates           £
170                 2,020
120                   1,470
50                     550

Variable catering cost per delegate =  £550/50 = £11
Fixed catering cost = £2,020 –  £(170 × 11) =  £150
Budget cost allowance for 185 delegates = £150 + £(185 × 11) = £2,185.

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