Based on the below budget please answer the additional questions below.

ACSH was unsuccessful in obtaining the foundation grant that they tried to solicit in Part 2, but it was able to raise a $150,000 gift for the new program from a generous donor. Wanting to take advantage of that and get the program going, the Executive Director was able to convince the Board to make enough funding available out of the Organization's unrestricted reserves to fund the incremental costs associated with the program, to allow it to get underway with a target of 35 children during the first year.

The Executive Director wants to know the answer to three questions:

(1) If we ignore the overhead component of costs, as well as the allocation of existing staff, how much money must ACSH make available to the program out of reserves to allow it to break even using the complement of new staff and classrooms/ related costs that was contained in the program budget sent to the foundation?

(2) Otherwise using the same assumptions as in (1), if ACSH wanted to adjust the costs (number of new staff and classrooms/ related costs) to the minimum needed to teach the 35 children, how much would ACSH have to make available to the program out of reserves to allow it to break even?

(3) Otherwise using the same assumptions as in (2), if ACSH chose to charge the parent(s) of each child a fee instead of making reserves available, how much would ACSH have to charge per child to allow the program to break even? Would the contribution margin be positive or negative?

Please explain your answers, with appropriate calculations where necessary. Please round to the nearest dollar (if necessary).

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