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Seven days a week, the Red Cloud Soup Kitchen provides a once-aday meal service to individuals in need. Several local governmental entities and several nonprofit organizations provide financial assistance to the Soup Kitchen and require weekly reporting. The base cost to keep their kitchen open on a daily basis is $500. The Soup Kitchen must employ 1 cook per 30 individuals attending the meal and cooks are paid a daily flat fee for their service of $100 per once-aday meal service (NOT PER INDIVIDUAL PLATE). In terms of food costs, each individual plate per person costs the Soup Kitchen $3.50 per individual.

(a) Identify the fixed, step, and variable costs.

(b) If 150 people take advantage of this daily service, what is the total cost to the Soup Kitchen for one week of food service?

(c) If 600 people take advantage of this daily service, what is the total cost to the Soup Kitchen for one week of food service?

(d) The local governmental entities and local nonprofit organizations collectively provide the Soup Kitchen $15,000 per week. Over a week, how many individuals can the Soup Kitchen feed on a daily basis and precisely break-even with the funds provided by these organizations?

(e) The Red Cloud Soup Kitchen receives a Healthy Foods Initiative Federal Grant. This federal grant provides the Soup Kitchen an additional $5000 per week in funding, but due to the food now being healthier than previously the per individual food cost becomes $4.50 per individual per meal. Based on these changes what is the new break-even point for the average number of individuals served daily over the course of a full week?

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