Disclaimer: This should be really easy, I just can't seem to get my head around it. Maybe it's an off day.
I am the treasurer for a small non-profit organization that provides services at two locations. A subset of the organization's expenses should be allocated to both locations. I'd like to figure out a formula for determining the appropriate allocation ratio between each location.
The inputs I'd like to use are as follows:
- client population per campus. In our example, Location 1 has 196 people (81.1% of total), and Location 2 has 46 people (18.9% of total). This split is subject to an annual re-calculation.
- board-approved split. There are two classes of shared expenses. One class is shared at 75/25 for Location 1/2 and the other class is shared at 50/50 for Location 1/2. This split is subject to an annual review.
For expenses that are shared 50/50, I want to just allocate expenses between the locations using the "population" ratio. So, instead of each location being responsible for 50% of the expense, I would allocate 81.1% to Location 1 and 18.9% to Location 2.
But for expenses that are shared at a different ratio, what's the formula that will get me my numbers?
I appreciate any input.
I am the treasurer for a small non-profit organization that provides services at two locations. A subset of the organization's expenses should be allocated to both locations. I'd like to figure out a formula for determining the appropriate allocation ratio between each location.
The inputs I'd like to use are as follows:
- client population per campus. In our example, Location 1 has 196 people (81.1% of total), and Location 2 has 46 people (18.9% of total). This split is subject to an annual re-calculation.
- board-approved split. There are two classes of shared expenses. One class is shared at 75/25 for Location 1/2 and the other class is shared at 50/50 for Location 1/2. This split is subject to an annual review.
For expenses that are shared 50/50, I want to just allocate expenses between the locations using the "population" ratio. So, instead of each location being responsible for 50% of the expense, I would allocate 81.1% to Location 1 and 18.9% to Location 2.
But for expenses that are shared at a different ratio, what's the formula that will get me my numbers?
I appreciate any input.