The document discusses balancing a festival budget. It emphasizes that the estimated income must realistically cover all expected costs and include a contingency for unexpected expenses. The student calculated total expenditures of £609.99 for their festival but had £0 in estimated income. They determined some expenditure items could potentially be cut if needed but that would make the festival less fun. The student was advised to adjust their budget estimates to balance income and expenditures.

1. Creative and Media: Level 2 Higher Diploma Unit 6: Festival
Level 2 Higher Diploma Creative and MediaUnit 1: Scene
6.2.7 Budget C
Student Book
pp 186–95
Balancing the budget
It is important that your budget balances and that your estimated income is realistic and
will cover all the costs the festival is likely to incur and includes a contingency for
unforeseen costs.
You should now try to balance your budget. Begin by subtracting the figure you calculated
for the total expenditure of the festival from the total estimated income. Are you left with
a positive amount of money, or is your expenditure more than your estimated income?
Examine both tables created in exercise A and consider the following questions.
1 Is your estimated income realistic?
We won’t get any income because our whole festival is completely free.
2 If it includes ticket sales, have you been realistic about the number of people who are
likely to attend the festival?
We aren’t going to sell ticket but the number of people that will be attending our festival is
going to be a high number around 200 people.
3 Is the price of your tickets reasonable?
We won’t sell any tickets.
4 Are all your items of expenditure essential or could you do without some items if
necessary?
We can do without some of the items on my expenditure list but I think that it would make
our festival a little boring.
Make any adjustments you need to and draw up your festival budget in the table below.
Income Expenditure
Item Amount Item Amount
Bouncy castle rental £50
Security £180
Face painters £120
Balloon maker £120
Popcorn machine £19.99
Nail salon £120
Flyers/ Promotional costs £250
© Pearson Education Ltd 2008. Copying permitted for purchasing institution only. This material is not copyright free. 1

2. Unit 1: Scene Creative and Media: Level 2 Higher Diploma
Unit 1: Scene
Total income £0 Total expenditure £609.99
Diploma Level 2 Information Technology
2 © Pearson Education Ltd 2008. Copying permitted for purchasing institution only. This material is not copyright free.