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Question - You wish to run an 8-week drop-in program out of your local community centre (one session per week, 2 hours per session). Your costs are as follows:
You will have to pay $600 to rent the facility for the duration of the program ($75/week).
You will need two staff at minimum wage ($15/hr) for the duration of the program (no setup/take-down).
Your start-up equipment costs are $200.
You will also have supply costs of $3.50 per participant each session. You can guarantee 15 participants per session (120 participant slots over the 8 weeks). What are the total fixed costs? What are the total variable costs? You may use these values in future calculations.
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