Costs and Cost Analysis PROFITS 35 What are the program's fixed costs, Variable costs and step costs! What will tal cost of the program be if the program enrolls fifty students! an analyms cognizing jor concerns regarding se and in the university ve to provide executives und it and when the as you would like to e break even analysis, DESERCISE 4.2. CONSIDERING PROGRAM EXPANSION WITH MARGINAL ANALYSIS ne government has contacted HFA for an additional ten new trainee spots, which would expand the current career training program to a total of sixty train The average cost of the program is approximately $6,000 per trainee at the arme level of service, however, the state is willing to pay $3,000 each for the extra spots, keeping the reimbursement rate for the fitty existing seats inchanged. The facility has the capacity for one hundred students and the num het al existing teachers can handle sixty students. Should the HFA accept this er from the state? onprofits its? ed in an nus EXERCISE 4.3. CONDUCTING BREAK-EVEN ANALYSIS Chen the recent economic downturn, Midtown Soup Kitchen would like to pro- vide meals in a new location. The initial study shows that the fixed costs, includ ngle rent, equipment, and personnel costs, are $50,000 per month. The facility un serve one thousand meals per day thirty days a month, and there is more demand than the kitchen can supply. The variable cost is the food cost, which is aproximately $2.00 per meal, and the city is willing to support the project. You di preparing a budget application to the city. How much support will you need from the city to make this project break even financially? osts LIGNMENTS and its Aw ITINITY COSTS TO A GRANT APPLICATION wirts during reentry