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Miallegro is a nonprofit organization that provides after-class services to kids in marginalized neighborhoods. The organization has $585,300 fixed costs if it serves 15,000 or
Miallegro is a nonprofit organization that provides after-class services to kids in marginalized neighborhoods. The organization has $585,300 fixed costs if it serves 15,000 or less kids. If the number of kids increases, the fixed costs will be $628,500. The variable cost per student is $50. The following are the costs that the organization expects considering different volume of services. Kids 10,000 12,000 Miallegro Expected Costs Considering Volume of Services Total Fixed Costs Total Variable Costs Total Cost $585,300 $500,000 $1,085,300 $585,300 $600,000 $1,185,300 $585,300 $750,000 $1,335,300 $628,500 $1,000,000 $1,628,500 $628,500 $1,250,000 $1,878,500 15,000 20,000 25,000 Based on the previous information answer the following questions: A. The organization is currently providing services to 10,000 kids. It is offered $275,000 to provide services to 5,000 additional kids ($55 per kid). Should the organization accept the offer? Why? B. Now suppose the organization is providing services to 15,000 kids. It is offered $275,000 to provide services to 5,000 additional kids ($55 per kid). Should the organization accept the offer? Why? - In the explanation please compare this answer with your answer for (a)
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