In this workout, we're asked to calculate the head count budget. We're told there are two business units, each has managers and junior workers, and all positions can be full-time or temporary.

In starting this, I'm gonna have to decide how to lay out my budget. There are many, many ways we could do this. I've started by putting in some assumptions for managers and for juniors. If you look at my manager assumptions, I've got the number of full-time workers, the number of temporary workers, and the per annum cost of each. Then for the juniors, I've got exactly the same four line items, number of full-time and temporary, and the cost of a full-time and the cost of a temporary worker. The next thing we were told is that there were two business units, so I'll put those headings in. Next, let's call them business unit A and business unit B.

Lastly, we need some numbers, so let's put those in. If we look at business unit A, we can see that the number of full-time workers is 10, and the number of temporary workers is five. The per annum cost of a full-time worker is 50,000 and the per annum cost of a temporary worker, 55,000. All of this for the managers we can see for business Unit B, we've got different figures, and for our juniors we've got completely different figures. Again, what we now need to do is start totaling these up again, we could do this in a number of different ways. The way I'm going to do it is I'm gonna work out my manager cost for business unit A and B separately. Then I'll work out my junior cost for A and B separately. Then I'll total up A total up B, and then I'll find the overall cost for both.

Well, for business unit A, we had 10 full-time workers, each who had a cost of 50,000, and we had five temporary workers. We need to add them on each. Who had a cost of 55,000 that comes to 775,000. Now, because of the way I've laid this out, I can copy that formula to the right and my formula from business Unit A can now copy across to the right to business unit B, and I find that business Unit B'S manager cost is 120,000. Why is that? Primarily because we've got far fewer managers. Now, let's do the same for the juniors. We had 50 full-time Juniors in business Unit A each had a cost of 30,000, and we had no temporary workers at a cost of 29,000. That comes to 1.5 million, much higher because we've got 50. The 50 workers in total is giving us that big increase in cost. Again, I can copy that formula to the right and my formula shifts one column to the right. I can now work out my total cost for business unit A, which comes to 2,275,000, and the same for business. Unit B is now 625,000. Finally, I've now got to my overall headcount budget or overall cost. That's going to be the sum of the two business units, which comes to 2.9 million.