14.37 Cost-based pricing in a not-for-profit entity 06 Cairns Legal Services is part of a larger not-for-profit entity (Capricorn Resource Centre) that provides free legal and job placement services and houses a food bank for qualified clients. Last year's costs for 5000 visits to legal services are presented here Lawyer's salary Part-time secretary Miscellaneous supplies Paralegals' salaries Administrative costs Rentb $90000 12 000 6000 70 000 34000 10000 $222 000 A portion of the administrative costs of the Cairns Council. These costs have been allocated to programs based upon the salary costs of the program. A portion of the rent for the Capricorn Resource Centre. Total rent is allocated on the basis of the space occupied by each program. Expected grants for the next year from the federal government and the Cairns Council have been reduced due to an economic downturn. The organisation's executive director is considering dropping legal services. Eliminating the legal services program will result in a savings of about $4000 in administrative costs. The space vacated by legal services could be used by the food bank, which is presently renting quarters in another building for $8000 a year