Midtown Soup Kitchen would like to provide meals in a new location. The initial study shows that the fixed costs, including the rent, equipment, and personnel costs, are $50,000 per month. The facility can serve 1,000 meals per day 30 days a month, and there is more demand than the kitchen can supply. The variable cost is the food cost, which is approximately $2.00 per meal, and the city is willing to support the project.   You are preparing a budget application to the city. How much support will you need from the city to make this project break even for your nonprofit financially?

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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Midtown Soup Kitchen would like to provide meals in a new location. The initial study shows that the fixed costs, including the rent, equipment, and personnel costs, are $50,000 per month. The facility can serve 1,000 meals per day 30 days a month, and there is more demand than the kitchen can supply. The variable cost is the food cost, which is approximately $2.00 per meal, and the city is willing to support the project.

 

You are preparing a budget application to the city. How much support will you need from the city to make this project break even for your nonprofit financially?

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