Question

The county government released $100,000 as an appropriation for a counseling program for at-risk teenagers. The program should run one year and the variable costs for the program are $400 per teenager per year. Within the relevant range of 50 to 150 teenagers, the fixed costs for the program are $60,000. How many teenagers can the program serve

Answer 1

Answer:

Number of teenagers= 100 teenager

Explanation:

Giving the following information:

The county government released $100,000 as an appropriation for a counseling program for at-risk teenagers. The variable costs for the program are $400 per teenager per year. Within the relevant range of 50 to 150 teenagers, the fixed costs for the program are $60,000.

First, we need to deduct the fixed costs that remain don't affect directly the teenagers.

Budget= 100,000 - 60,000= 40,000

Now, we can calculate the number of teenagers to attend:

Number of teenagers= 40,000/400= 100 teenagers