Flora is preparing the budget section of a business proposal, and she needs to include an estimate of the cost of hiring a graphic designer to produce promotional materials. The standard rate in her area is $50 per hour, but Flora knows several competent designers who would likely be willing to do the work for around $30 per hour. How should she budget for graphic design?
A) Use the $50 per hour rate to ensure sufficient funding even after cuts.
B) Use the $30 rate to make her total costs more attractive to funders.
C) Make two separate budgets based on the $30 and $50 rates.
D) Leave that section empty and explain the situation in a footnote.
E) Use a figure somewhere between the high- and low-end estimates.

Question

Quizplus · Accepted Answer

Using the higher rate ensures that the budget will be sufficient even if actual costs are at the upper end of the range, providing a buffer for unexpected expenses or budget cuts.

Flora Is Preparing the Budget Section of a Business Proposal