Trinity Church has been asked to operate a homeless shelter in its parish hall. To operate a
Question:
Trinity Church has been asked to operate a homeless shelter in its parish hall. To operate a homeless shelter, the church would have to hire a full-time employee for\($2,200\) per month to manage the shelter. In addition, the church would have to purchase\($900\) of supplies per month for the people using the shelter. The space that would be used by the shelter is rented on occasion for wedding parties. The church averages about five wedding parties per month at a rental fee of \($500\) per party. Utilities are normally \($1,000\) per month. With the homeless shelter, the utilities will increase to\($1,300\) per month.
What is the opportunity cost to the church of operating a homeless shelter in the parish hall?
Step by Step Answer:
Management Accounting In A Dynamic Environment
ISBN: 9780415839020
1st Edition
Authors: Cheryl S McWatters, Jerold L Zimmerman