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ABC Community Services, which offers a variety of programs to the greater Austin community, has recently received a contract from the state government to begin a new technology job training program. The State will fund 80% of the program and the agency must raise the rest through philanthropy. The Executive Director has determined that the new program will need an Program Director to manage program. The salary for this position is budgeted at $80,000. The program will also hire teachers/trainers, each of whom can teach up to twenty trainees. The salary for the teachers is $50,000 per year. The monthly expense for a facility to house the new technology training program will be $5,000 per month for the next twelve months and the facility can accommodate up to one hundred people. . The utilities, insurance, and custodial services are estimated to be $18,000 annually. Each of the program participants will receive a set of textbooks and other teaching materials, estimated at $1,500 dollars per person. The agency has received donations of computers and software valued at $250,000. For this exercise, no other potential costs are considered for this case.

5 pts - What will the total cost of the program be, including in-kind donations, if the program enrolls fifty students?

5 pts - What are the total operating and personnel expenses, less the in-kind donations?

5 pts - If the state has committed to pay 80% of program costs (remember, they aren't covering in-kind), what is the value of the state contract?

5 pts - How much does the Executive Director need to raise so the program breaks even?

5 pts - What are the programs fixed costs, variable costs, and step costs?

5 pts - What is the average cost per student?

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