QUESTION ONE [20]

1.1 FRAIL CARE NPO is a non-profit organisation that provides a variety of services to the elderly. The centre is organised into a number of departments, one of which is the meals-on-wheels programme that delivers hot meals to seniors in their homes on a daily basis. Below a number of costs of the centre and the meals-on-wheels programme are listed.

1.1.1 The cost of groceries used in meal preparation.

1.1.2 The cost of leasing the meals-on-wheels delivery vehicle.

1.1.3 The cost of incidental supplies such as salt, pepper, napkins, etc.

1.1.4 The cost of petrol consumed by the meals-on-wheels delivery vehicle.

1.1.5 The rent on the facility that houses the centre, including the meals-onwheels programme. 1.1.6 The salary of the part-time manager of the meals-on-wheels programme.

1.1.7 Depreciation on the kitchen equipment used in the meals-on-wheels programme.

1.1.8 The hourly wages of the person who drives the delivery vehicle and delivers the meals.

Required: Categorise each cost listed above (number 1.1.1 - 1.1.8) as a direct (D) or indirect (I) cost of the meals-on-wheels programme, AND whether it is variable (V) or fixed (F) with respect to the number of seniors served. (16) Note: Only write the question number (1.1 - 1.8) and D or I AND V or F For example: 2.1.9 D V