One of the major activities of the City Art Museum (CAM) is a Neighborhood Outreach Program, which was developed both as a public service and to market the museum and Its other programs. One of the Outreach offerings, which is popular with both city and suburban residents, is the weekly Evening Lecture Series. The Series provides lectures on local art and history in various locations throughout the greater metropolitan area. A new museum director has been hired with the goal to make the museum more self-sustaining and less reliant on donations and government grants. One of the director's first actions was to ask the museum staff to put together detailed financial Information on the Individual activities. The result, shown in the accompanying table, indicates that the series operates at a loss. CITY ART MUSEUM Neighborhood Outreach: Evening Lecture Series For the Year Ending June 30 Sales revenue Costs Advertising Lecturer fees and expenses Operating costs (staff) Space rental Food and bevarage expenses Allocated museum overhead Total costs Net loss The director is considering canceling the program of the loss cannot be eliminated. After discussions with various staff, the director concludes that raising the fees for attending the lectures is not possible given current economic conditions in the area. The director has asked you for your recommendation. If the Series is cancelled, the total museum overhead is not expected to change. However, the other costs, which are directly related to the program (lecturer fees, space rental, and so on) would be saved. Dropping the Serles will not affect the costs or operations of any of the other Outreach programs. Required: a. Using the worksheet below, determine which revenues and costs are probably differential for the decision to drop the Evening Lecture Series. b. What will be the net effect on the museum's contribution (profit) If the Series is cancelled? $ 386,000 $ 15,000 195,000 26,000 12,000 25,000 143,000 $ 416,000 $ (30,000) Complete this question by entering your answers in the tabs below. Required A Required B Using the worksheet below, determine which revenues and costs are probably differential for the decision to drop the Evening Lecture Series. Revenue Costs CITY ART MUSEUM Neighborhood Outreach: Evening Lecture Series Differential Revenues and Costs For the Year Ending June 30 Advertising Lecturer fees and expenses Operating costs (staff) Space rental Food and beverage expenses Allocated museum overhead Total costs $ 0