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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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