Question
HFA has recently received a contract from the state government to expand its job training program. The program will last for at least one year
HFA has recently received a contract from the state government to expand its job training program. The program will last for at least one year and will likely continue in the future. The expanded program will need a director with a salary of $70,000. The estimated rent for a facility to house the program will be approximately $20,000 for the next 12 months. The utilities, insurance, and custodial services are estimated to be $10,000 yearly. The facility can accommodate up to 100 people. The expanded program will also hire extra teachers/trainers, each of whom can teach up to twenty trainees. The salary for the teachers is $50,000 per year. Each of the program participants will receive a set of textbooks and other teaching materials, estimated at $1,000 per person. For simplicity, other potential costs are not considered for this case. What are the program's fixed costs, variable costs, step costs, total costs, and average costs of the program if the program enrolls 50 students?
Please show all calculations and explain your answers. Thank you.
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