1. A local nonprofit helps low-income residents of the surrounding community prepare their taxes. For their first year of operation, they have secured a $450,000 grant. They plan to operate 6 days of the week for 48 weeks of the year, and anticipate preparing 1,200 tax forms (one for each client), spread evenly throughout the year. Rent and utilities will cost on average $6,500 per month, which they must pay year-round (i.e. 12 months per year). The executive director of the program earns a salary of $62,000 per year, plus benefits equal to 20% of her salary. The organization employs 5 tax preparers, each of whom is paid $225 per day. The nonprofit must pay $15 per client in filing costs to the IRS.

[Note: Round your numbers to TWO decimal places, e.g. 32.12]

A. How much must the organization charge each client if the goal is to break even? $____________

B. How much must the organization charge each client if the target profit is $250 per week? _______

C. Total fixed costs per week are: $_________

D. Increase in which of the following variables would result in your answer to part A) increasing _____?

1. Variable cost

2. Fixed Revenues

3. Quantity