Opportunity Costs The First Church Has Been Asked to Operate a Homeless

Essay

Opportunity Costs
The First Church has been asked to operate a homeless shelter in part of the church.To operate a homeless shelter the church would have to 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.
What is the opportunity cost to the church of operating a homeless shelter in the church?