3-33. You are the manager of the Corn is Not Just for Ethanol (CNJE) relief organization, which works with a coalition of countries to help provide corn, wheat, and other food staples to countries where food is in short supply. CNJEs board has asked you to prepare a monthly operating budget based on feeding 15,000 people per day as well as a flexible budget based on a 30 percent increase in the number of people you will have to feed each day. Your operation has three full-time employees: a manager who earns $48,000 per year, a security chief earning $36,000 per year, and a field manager who earns $24,000 per year. CNJE spends an additional 30 percent of each employees annual salary to pay for the cost of health insurance and retirement benefits. You also employ 20 local people as cooks. They earn $25 per day. As a group, they can cook enough food to feed up to 20,000 people per day. Cooks do not receive benefits. You use trucks to deliver food and cooking fuel to the remote feeding sites. You estimate it takes one truck to service every 500 people you feed each month. It costs $2,600 to pay for the fuel, drivers, and maintenance to operate one truck for one month. Depreciation for non-trucking equipment adds $18,000 to expenses. Direct costs for food are $4.00 per person per day. The coalition of countries has agreed to pay CNJE $4.17 per day for each person you feed. For budgeting purposes, assume there are 30 days in a month. Finally, the World Nutrition Society has pledged $50,000 per month to support the CNJE effort for the coming year. Base Flexible Revenues Grant Revenue Coalition per-person fed payments Total Revenue & Support Expenses Staff Salaries $108,000 Cooks Benefits Total Salaries and Benefits Other Operating Expenses Food Costs Step Fixed Trucking Costs Depreciation Total Other Operating Expenses Total Expenses Surplus/(Deficit)

	Base	Flexible
Revenues
Grant Revenue
Coalition per-person fed payments
Total Revenue & Support
Expenses
Staff Salaries	$ 108,000
Cooks
Benefits
Total Salaries and Benefits
Other Operating Expenses
Food Costs
Step Fixed Trucking Costs
Depreciation
Total Other Operating Expenses
Total Expenses
Surplus/(Deficit)