Question: While working at your desk in your (so far) wildly successful first year as Director of Operations and Finance at Most Illustrious Nonprofit ( MIN

While working at your desk in your (so far) wildly successful first year as Director of Operations and Finance at Most Illustrious Nonprofit (MIN), MINs head of fundraising walks in with good news.

I can get Slightly Out of Touch Foundation (SOOTF) to give us $7,500 to support that new weekend program we were brainstorming, they say. SOOTF is willing to give us a grant to allow 50 kids from the neighborhood to attend a pilot offering.

MIN has never offered the program before, but youve estimated that to do it well youd need to spend $500 on fixed costs (space rental) as well as $250 per kid on variable costs (food, materials, transportation).

Can I tell them the 50 kids can come for free? your head of fundraising asks. Or will we need to charge each kid something in order to cover the cost?

Calculate the price point at which 50 kids = the Break-Even Quantity for the weekend program.

Extra credit: What do you recommend you and the head of fundraising do with this information?

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