Recently, the YMCA moved from Ardmore PA to its new location at Haverford PA. The new YMCA is larger, more technological advanced, with a great variety of classes and activities for its members. When YMCA moved from Ardmore to Haverford the board of trustees decided to retain the member fees at the same rate in an effort to motivate its Ardmore members to follow YMCA to the Haverford location. Recently though, the YMCA board of trustees have suggested that the aforementioned policy should be re-evaluated.


Therefore, the YMCA Director is now conducting a Cost Analysis to figure out what is the break-even point. Suppose that the YMCA member fee averages to $75 per month. The YMCA currently has 8,000 members and faces the following costs:


  • Personnel cost (?)
  • Mortgage: $7,000 a month
  • Utilities: $2,000 a month
  • Insurance: $3,000 per semester
  • Pool maintenance cost: $0.2 per member per month
  • Maintenance cost of equipment: $0.1 per member per month
  • Parking Assistance cost: $0.1 per member per month


Here are the facts around the YMCA’s personnel cost:


  • Pay Period is twice a month (every 15th and 30th)
  • Fiscal Year begins on July 1st and ends on June 30th


  • Wage adjustments begin with the first payroll in the fiscal year
    • All wages are adjusted for inflation (2%)
    • Every 5 years employees receive a $5,000 longevity bonus


  • Fringe Benefits & Taxes
    • Health insurance is $300 per month for each employee
    • Unemployment Insurance (UI) is $412 per month for each employee
    • Social Security Contribution Rate is 6.2%. The cap for Social Security Wage is $127,200.



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