Question: Senior Ride Access SRA provides a van service for senior

Senior Ride Access (SRA) provides a van service for senior citizens. SRA receives a $ 100,000 grant each year from a local foundation for the aged. SRA expects to spend $ 2,500 each year to pay for copying and supplies to operate the service. Insurance will cost the SRA $ 1,750 per year for each of the two vans that it operates. SRA employs a supervisor, earning $ 34,000 a year to run the van service. There are also six part- time coordinators who organize the routing of the vans and provide outreach to the senior community. Each coordinator works an average of 17 hours per week for 50 weeks in the year. Coordinators earn $ 10 per hour. All drivers are volunteers. The costs associated with carrying each passenger are $ 0.50 per mile. The average ride for each passenger is 5 miles. Seniors are asked to donate $ 1.00 for each ride, but only 85 percent of the riders are able to afford the donation.
Prepare an operating budget for the upcoming year, assuming 5,000 seniors use the van service during the year. In the past, there have been fluctuations in ridership so SRA would also like to see what would happen should there be a 10 percent increase or decrease in the number of rides.

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  • CreatedDecember 19, 2014
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