Chapter 7 Number 5Class cost / person $600.00 POSTCARD COSTSCredit Card Flat Fee $20.00 Number of Postcards Printed 5,000Credit Card Transaction Fee 5.00% Number of Postcards Sent 4,000Estimated Registered Attendees 30 Printing Cost Each/Total $0.40 $2,000.00 TOTAL REVENUE Mailing and postage Each/Total $1.00 $4,000.00Total Revenue $18,000.00 Beverage and Lunch Each/Total $25.00 $750.00 Class Handouts Each/Total $30.00 $900.00 FIXED COSTSFixed Cost $500.00 CREDIT CARD COSTSSetup fee $400.00 5% Per person $900.00Designing & Advertising $300.00 Minus $20 Per Person $600.00Material Development Rate $0.00 Total Credit Card Cost $1,500.00Total Fixed Costs $1,200.00 VARIABLE COSTSCredit Card Processing Cost $1,500.00Postcard Printing Cost $2,000.00Postcard Mailing Cost $4,000.00Food & Beverage Cost $750.00Class Handout Costs $900.00Total Variable Costs $9,150.00Total Revenue $18,000.00Total Costs $10,350.00 Labor Costs Time Invested Hrs. Hourly ProfitTotal Profit: $7,650.00 $0.00 150 $51.00 Yellow = Variable Cost and can be changedProject Constraints:1. You will be charge $600 per person for a two-day class2. You estimate that 30 people will register for and attend the class, but you want to change this input3. Your fixed costs include $500 total to rent a room for both days $400 for registration4. You will NOT include any of your labor costs for this estimate, but you estimate that you will spend at least150 hours developing materials, managing $300 for designing a postcard for class. You would like to know what the project, and giving the actual advertisingyour time is worth given different scenarios.5. You will order Total 5,000 postcards 4,000 mail Distribute the rest to friends and colleagues6. Your variable costs include the following a. -$5 per person for registration + 4% of the class fee per person b. $0.40 per postcard for priting if you order 5,000 or more c. $0.25 per postcard for mailing and postage. d. $25 per person for beverages and lunch. e. $30 per person for class handouts.