Little Hands Daycare charges $40 per day per child. Fixed expenses include $120 per day for wages and $300 per day for space rental and insurance. The daycare can take in up to 20 children each day and is expected to be full.
(a) To break even, what is the most that can be spent on supplies per child per day?
(b) To achieve a profit of $200 per day, what is the amount that can be spent on supplies per child per day?