The First Church has been asked to operate a homeless shelter in part of the...
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The First Church has been asked to operate a homeless shelter in part of the church. To operate a homeless shelter the church must hire a full-time employee for $1,200/month to manage the shelter. In addition, the church would have to purchase $400 of supplies/month for the people using the shelter. The space that would be used by the shelter is rented for wedding parties. The church averages about 5 wedding parties a month that pay rent of $200 per party. Utilities are normally $1,000 per month. With the homeless shelter, the utilities will increase to $1,300 per month. If the Church operates the homeless shelter, it receives a cash grant of $1,500 from the city. What is the opportunity cost in dollar value to the church of operating a homeless shelter in the church?
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