Triad Children's Center (TCC), a non-profit organization, uses relevant cost analysis to determine whether new services are desirable. TCC is looking at adding a new educational program for grade school children who are having difficulty with their reading and math skills. The following relevant costs are expected if the program is accepted:

Costs (per year)
Program Director salary	$	34,000
Part-time Assistants	$	29,000
Variable cost per child	$	1,200

TCC estimates that a maximum of 40 children will participate in this program in the first year. If TCC decides to implement this program, funding will be received from the City Chamber of Commerce ($56,000) and a local Private University Endowment Fund ($33,000).

Calculate the expected surplus or deficit from operations given the above information.

Multiple Choice

• $32,000 surplus.

• $14,000 surplus.

• $21,000 deficit.

• $22,000 deficit.

• Some amount other than those listed here.