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The Mead Meals on Wheels Center (MMWC) provides meals every day to the homebound elderly. There is no shortage of demand for MMWC's services among

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The Mead Meals on Wheels Center (MMWC) provides meals every day to the homebound elderly. There is no shortage of demand for MMWC's services among the elderly citizens of Wabash, and MMWC can find qualified recipients for as many meals as it can deliver. Each person helped by MMWC receives two hot meals per day, seven days per week, for a total of 14 meals every week. For each person MMWC serves per week (that is, for each elderly resident that is served 14 meals per week), the city of Wabash pays MMWC $32. To service the contract, MMWC has a central kitchen that has the capacity to produce a maximum of 9,600 meals per day. It costs MMWC an average of $36,000 per week to operate the kitchen and other central facilities regardless of the number of meals that MMWC serves. This covers all of MMWC's fixed costs (e.g., rent, equipment costs, and its personnel including administrative staff) as well as its fixed seasonal service contract costs (utilities, snow removal, etc.). The first problem that MMWC faces is figuring out how much it can afford to spend per person, per week for food to supply the program. Food is MMWC's only variable expense. You are MMWC's only program analyst. The Break even price is $24.50. Total Revenue is $153,600. The fixed Cost is $36,00. and Weekly capacity in clients is 4,800. The Mead Meals on Wheels Center (MMWC) provides meals every day to the homebound elderly. There is no shortage of demand for MMWC's services among the elderly citizens of Wabash, and MMWC can find qualified recipients for as many meals as it can deliver. Each person helped by MMWC receives two hot meals per day, seven days per week, for a total of 14 meals every week. For each person MMWC serves per week (that is, for each elderly resident that is served 14 meals per week), the city of Wabash pays MMWC $32. To service the contract, MMWC has a central kitchen that has the capacity to produce a maximum of 9,600 meals per day. It costs MMWC an average of $36,000 per week to operate the kitchen and other central facilities regardless of the number of meals that MMWC serves. This covers all of MMWC's fixed costs (e.g., rent, equipment costs, and its personnel including administrative staff) as well as its fixed seasonal service contract costs (utilities, snow removal, etc.). The first problem that MMWC faces is figuring out how much it can afford to spend per person, per week for food to supply the program. Food is MMWC's only variable expense. You are MMWC's only program analyst. The Break even price is $24.50. Total Revenue is $153,600. The fixed Cost is $36,00. and Weekly capacity in clients is 4,800

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