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:
Income
 The number of participants and the amount of income that
will be generated from fees paid by participants
 The profit from sales of merchandising
Costs
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.


