IMPORTANT! Please show calculations used to obtain the answers to the questions at the end of the case!!!

IMPORTANT! SHOW ALL CALCULATIONS USED TO OBTAIN ANSWERS!

Harlan Foundation Harlan Foundation was created in 1961, under the terms of the will ofMartin Harlan, a wealthy Minneapolis benefactor. His bequest was approximately $3,000,000, and its purpose was broadly stated: income from the funds was to be used for the benefit of the people of Minneapolis and nearby communities In the next 35 years, the trustees developed a wide variety of services. They included three infant clinics, a center for the education of special needs chil- dren, three family counselling centers, a drug abuse program, a visiting nurses program, and a large rehabilitation facility. These services were provided from nine facilities, located in Minneapolis and surrounding cities. Harlan Founda- tion was affiliated with several national associations whose members provided similar services The Foundation operated essentially on a breakeven basis. A relatively small fraction of its revenue came from income earned on the principal of the Harlan bequest. Major sources of revenue were client fees, contributions, and grants from city, state, and federal governments. Exhibit 1 is the most recent operating statement. Program expenses in cluded all the expenses associated with individual programs. Administration expenses included the costs of the central office, except for fund-raising ex- penses. Seventy percent of administration costs were for personnel. The staff members (excluding two senior officers) earned an average of $18,000 per year in salaries and fringe benefits. In 1997, the Foundation decided to undertake two additional activities. One was a summer camp, whose clients would be children with physical disabili ties. The other was a seminar for managers in social service organizations. For both of these ventures, it was necessary to establish the fee that should be charged. Camp Harlan The camp, which was renamed Camp Harlan, had been donated to the Foun dation by a person who had owned it for many years and who decided to retire. The property consisted of 30 acres, with considerable frontage on a lake, and buildings that would house and feed some 60 campers at a time The plan was to operate the camp for eight weeks in the summer, and to en roll campers for either one or two weeks. The policy was to charge each camper a fee sufficient to cover the cost of operating the camp. Many campers would be unable to pay this fee, and financial aid would be provided for them. The financial aid would cover a part, or in some cases all, of the fee