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Triad Children's Center (TCC), a non-profit organization, uses relevant cost analysis to determine whether new...

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Accounting

Triad Children's Center (TCC), a non-profit organization, uses relevant cost analysis to determine whether new services are desirable. TCC is looking at adding a new educational program for grade school children who are having difficulty with their reading and math skills. The following relevant costs are expected if the program is accepted: Costs (per year) Program Director salary $ 39,000 Part-time Assistants $ 28,000 Variable cost per child $ 900 T

CC estimates that a maximum of 40 children will participate in this program in the first year. If TCC decides to implement this program, funding will be received from the City Chamber of Commerce ($50,000) and a local Private University Endowment Fund ($35,000).

Calculate the expected surplus or deficit from operations given the above information.

Answers could be: $18,000 deficit.

Some amount other than those listed here.

$10,000 surplus.

$17,000 deficit.

$28,000 surplus.

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