Local Hospital (LH) has decided that it would like to send nurses to a local supermarket to provide a free health screening for interested supermarket customers. The screening will consist of...

Local Hospital (LH) has decided that it would like to send nurses to a local supermarket to provide a free health screening for interested supermarket customers. The screening will consist of measuring the individual’s blood pressure and taking a drop of blood, which will immediately be tested for several critical indicators. The director of public relations at the hospital believes that 100 people will take advantage of the screening each day. The plan is to provide the screening every day for 1 week; thus a total of 700 screenings are expected. LH expects the supermarket to provide a $1,000 grant to help defray the costs of the program (since it will likely draw more customers to the store). LH anticipates the following expenses:

Create a special purpose budget for the program. Show revenues and expenses by line item and show the expected profit or loss. If there is an expected loss, should LH necessarily abandon the project or are there other factors that must be considered?12