Prepare a scenario budget

A financial scenario is basically a mathematical problem in which the objective is to calculate a financial outcome, usually profit, from a given amount of information about probable income and costs.

The following activity provides an example of how to calculate a financial scenario based upon given information. The scenario is a chess tournament, and your tasks is to calculate the amount of profit based on probable income and costs.

This activity is a typical example of the usefulness of spreadsheets (such Microsoft Excel) for solving complex financial problems. This problem is relatively easy in MS Excel.

The information you are given includes:


  • The number of participants and the amount of income that will be generated from fees paid by participants
  • The profit from sales of merchandising


The costs involved in staging the event which include:

  • Venue Costs
  • Promotion and Administration
  • Catering
  • Trophies


The answer to the problem is that the Chess Tournament will yield a profit of $1,490 if everything goes as planned.





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