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29 Mar 2023
- Suppose that a local non-profit organization rans a program in two parts of the city: east and west El Paso. Fixed costs for all three are $5,000 and the average donations, variable costs, and mix of contributions show below. What would the break-even volume be (how many donations need to be received to break-even)?
How many from East and how many from West El Paso?
Program
Mix of contributions
Average donation
Average variable cost
Contribution margin
East El Paso
60%
$15
$12
West El Paso
40%
$17
$11
Total
100%
- Suppose that a local non-profit organization rans a program in two parts of the city: east and west El Paso. Fixed costs for all three are $5,000 and the average donations, variable costs, and mix of contributions show below. What would the break-even volume be (how many donations need to be received to break-even)?
How many from East and how many from West El Paso?
Program
Mix of contributions
Average donation
Average variable cost
Contribution margin
East El Paso
60%
$15
$12
West El Paso
40%
$17
$11
Total
100%
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