Triad Children's Center (TCC), a Non-Profit Organization, Uses Relevant Cost

question 27

Multiple Choice

Triad Children's Center (TCC) , a non-profit organization, uses relevant cost analysis to determine whether new services are desirable. TCC is looking at adding a new educational program for grade school children who are having difficulty with their reading and math skills. The following relevant costs are expected if the program is accepted:TCC estimates that a maximum of 40 children will participate in this program in the first year. If TCC decides to implement this program, funding will be received from the City Chamber of Commerce ($50,000) and a local Private University Endowment Fund ($35,000) .
Calculate the expected surplus or deficit from operations given the above information.

• A) $28,000 surplus.
• B) $10,000 surplus.
• C) $17,000 deficit.
• D) $18,000 deficit.
• E) Some amount other than those listed here.

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Definitions:

Assumption Of Risk

A legal doctrine that a person may not recover for an injury received when they voluntarily expose themselves to a known danger.

Voluntarily

Voluntarily refers to actions taken out of one's own free will without coercion or obligation from external forces.

Unreasonably

Acting without regard to what is fair, proper, or logical, often leading to harm or injustice.

Negligence Claim

A legal claim arising from failing to act with the level of care that someone of ordinary prudence would have exercised under the same circumstances, leading to harm or damage.