Question
Housing the Homeless (HH) offers three types of services homeless outreach, temporary housing and a soup kitchen. The average weekly mix of services delivered, as
Housing the Homeless (HH) offers three types of services homeless outreach, temporary housing and a soup kitchen. The average weekly mix of services delivered, as well as the marginal costs and revenues from those services are shown in the table below.
(4 points) What is HHs overall contribution margin per person served?
(2 points) If HH serves 2,400 people per week, fixed costs are $15,000 per week and they receive donations that average $12,000 per week, do they currently break even on their operations? Support your answer with the appropriate calculations.
weekly operating statistics | % of people served | Revenue per person | Cost per person |
outreach | 36% | $14 | $12 |
Temporary Housing | 8% | $45 | $41 |
Soup Kitchen | 56% | $4 | $3 |
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