7. Camp Fire USA is a national organization with local community outreach programs. One program is for afterschool programs for first through fifth grade students.

They now have one school and are considering expansion into one or two additional schools. The two additional schools being considered are Buffett and Gates.

Camp Fire has obtained a grant in the amount of

$125,000 per year for 3 years to extend to one or more additional schools.

Your assignment is to create a Planners Lab model to analyze various scenarios and then make a recommendation of what Camp Fire might do. Starting assumptions are as given below. Try to arrive at a defensible recommendation to offer programs at both schools and do that within Camp Fire’s ability to cover costs in the amount of $125,000 per year. You are free to make changes in assumptions to achieve this goal if your changes are rational and reasonably supported. Assumptions include the following:

a. The staff to student ratio is 1 staff member for each 10 students.

b. The salary for a staff member is $30,000 per year.

c. For Buffett, miscellaneous costs are estimated to be

$10,000 per year. For Gates, they are $5,000.

d. There are estimated to be 30 student prospects at Buffett and 20 at Gates.

e. The Gates school board has agreed to donate $15,000 if Camp Fire will host its program at its school.

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Assumptions 2009 COMMENT Camp Fire USA assumptions 2010 2011 Expansion funds Staff to student ratio Staff salary Number of Buffett students Number of Buffett required staff COMMENT Buffett school assumptions 125,000 0.1 30,000 125,000 125,000 0.1 0.1 30,000 30,000 30 30 30 3 3 3 Buffett required staff cost Buffett misc costs 90,000 90,000 90,000 10,000 10,000 10,000 Buffett donation 0 0 0 Cost to add Buffett 100,000 100,000 100,000 Balance of expansion funds 25,000 25,000 25,000 if add Buffett COMMENT Gates school assumptions Number of Gates students 20 20 20 20 Number of Gates required staff 2 2 2 Gates required staff cost 60,000 60,000 60,000 Gates misc costs 5,000 5,000 5,000 Gates donation 15,000 15,000 15,000 Cost to add Gates 50,000 50,000 50,000 Balance of expansion funds 75,000 75,000 75,000 if add Gates