This fictional example is a seven-day, six-night session with up to forty-eight participants. Staff beds and other reserved spaces are separate from those forty-eight sellable places. The example does not prove that any particular staff count is adequate.
Fixed costs for the session
| Item | Fictional cost |
|---|---|
| Staff, including preparation, residential care, and relief | $24,500 |
| Site and lodging commitment | $9,000 |
| Administration | $2,000 |
| Allocated insurance | $1,500 |
| Operating contingency allowance | $2,000 |
| Total fixed costs | $39,000 |
Cost for each participant
| Item | Fictional cost |
|---|---|
| Food | $210 |
| Laundry and cleaning supplies | $45 |
| Activity materials and equipment allowance | $45 |
| Payment and individual booking costs | $40 |
| Personal health and care supplies allowance | $20 |
| Total variable cost | $360 |
At a fee of $1,375, contribution is $1,015 per place. Break-even is $39,000 ÷ $1,015 = 38.42, rounded up to thirty-nine paid places.
| Paid places | Revenue | Total modeled cost | Operating result |
|---|---|---|---|
| 32 | $44,000 | $50,520 | −$6,520 |
| 40 | $55,000 | $53,400 | $1,600 |
| 48 | $66,000 | $56,280 | $9,720 |
The forty-person result is small compared with the whole operation. A major repair, extra staffing need, or refund can change it quickly. Do not reduce safety cover to protect the margin.
Check room mix as well as total enrollment. Forty participants may not fit the available approved room assignments. A bed that cannot be used for the actual group is not usable capacity.
Your task: Recalculate with the venue's minimum charges and a realistic lower-enrollment case.