Unemployment among high school graduates is quite high due to arecession. City Community College is considering a new program tohelp young people get the training they need to be more employable.The college has collaborated with the municipal hospital to build anurse's aide program, a 1 - year program that would lead toimmediate employment. Initial financial analysis indicates that thetotal fixed cot of the program will be $200,000, which includes thecost of a 1-year rental of the facilities plus utilities,insurance, and administrative costs The variable cost and step costtogether are $10,000 per student, which pays for facility salary,student lunches, and teaching materials and textbooks. The statekicks in $5000 per student, and the tuition based on marketanalysis is $6000. Given that the nurse's aide program has neverbeen offered in the region before and will be under financialpressure due to current funding cuts, the college's board oftrustees would like to know how many students will need to beenrolled for the program to break even. The board also wants toknow what other options it will have to mitigate these financialissues if the expected enrollment is below the breakeven point,given the high profile of the program at a time when employment andeconomic recovery are critical.

Consider two possibilities: (1) Funding is limited to$100,000, or (2) with the benefit of efficiencies, variable, andstep costs can be reduced to $9,500. You are required to do afinancial analysis of the proposed program. Please provide aspreadsheet solution and a written explanation of yourapproach.