Triad Children's Center,a Non-Profit Organization,uses Relevant Cost Analysis to Determine

Triad Children's Center,a non-profit organization,uses relevant cost analysis to determine whether or not 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 will be incurred 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.
Total cost = $39,000 + $28,000 + ($900x40) = $103,000;Total funding = $50,000 + 35,000 = $85,000;Deficit = $103,000 - $85,000 = $18,000