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Suppose that a local non-profit organization rans a program in two parts of the city: east and west El Paso. Fixed costs for all three

Suppose that a local non-profit organization rans a program in two parts of the city: east and west El Paso. Fixed costs for all three are $5,000 and the average donations, variable costs, and mix of contributions show below. What would the break-even volume be (how many donations need to be received to break-even)? How many from East and how many from West El Paso?

Program

Mix of contributions

Average donation

Average variable cost

Contribution margin

East El Paso

60%

$15

$12

West El Paso

40%

$17

$11

Total

100%

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