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Point 1: Desert Vista Homeless Campus provides shelter and breakfast to individuals in need. Local governments and several nonprofit organizations provide financial assistance to the shelter and require weekly reporting. Desert Vista's current facility can hold a maximum of 300 people. The base weekly cost to run the shelter is $1,500. The shelter also needs 3 cooks per 75 residents to prepare sufficient amount of food for breakfast. Cooks are paid a flat fee of $50 for each meal prepared. Breakfast costs an average of $2 per meal to prepare, excluding staff costs.
Question (a) Identify the fixed, step, and variable costs.
Question (b) What is the cost incurred by the campus for 150 people over a 1-week period?
Question (c) What is the cost incurred by the campus for 200 people over a 1-week period?
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