Tip #9: Be prepared to do some math

This is tip #9 in a series of 13 to help you pass the CAE exam. Forward this tip to a friend.

Chances are, you didn't go into association management because you were a math wiz. If you were, you'd probably be in another field. But for the CAE exam, don't be surprised if they pop a few questions on you for which you'll have to do a little math. You might see one like this...

"You are publishing a textbook. Your fixed expenses are $2500 for the author and $500 to set up the press. Your variable expenses are $10 per book and $5 for shipping and handling. If you charge $100 for the textbook, what is the minimum number of books you need to sell in order to break even?"

I didn't see this one on my exam, but I've heard it has been on past exams...

"Your association publishes a monthly magazine which contains paid advertising. For the last fiscal year, you had $100,000 in advertising income, $70,000 in circulation expenses, and $10,000 in advertising sales expenses. Which of the following amounts is considered taxable?"

Another way they could get you to do some math...

"Your association has decided to pay the proxy tax on lobbying expenses. You spent $50,000 on lobbying. How much proxy tax do you owe?"

And finally...

"You are holding a fundraising dinner for your 501(c)3 foundation. The event ticket costs $100. Catering expenses are $50 per person. What amount may attendees claim as tax deductible?"

Keep checking my blog as I get down to the last four tips. The last few tips are the best ones, and I promise the last tip will be a very sneaky and stealthy tip. If you're using an RSS/XML aggregator or My Yahoo!, please note the links on the left that will allow you to keep up with my posts without having to continually check this web page for updates.