=+4-36 KK CVP, target profit, service firm OBJECTIVES 1, 2, 4 Teddy Bear Day-care provides day-care for

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=+4-36 KK CVP, target profit, service firm OBJECTIVES 1, 2, 4 Teddy Bear Day-care provides day-care for children from Mondays to Fridays. Its monthly variable costs per child are:

Lunch and snacks $150 Educational supplies 60 Other supplies (paper products, toiletries, etc.) 20 Total $230 Monthly fixed costs consist of:

Rent $2150 Utilities 200 Insurance 250 Salaries 2350 Miscellaneous 650 Total $5600 Teddy Bear charges each parent $580 per child.

Required 1 Calculate the break-even point.

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Cost Accounting A Managerial Emphasis

ISBN: 9781442563377

2nd Edition

Authors: Monte Wynder, Madhav V. Rajan, Srikant M. Datar, Charles T. Horngren, William Maguire, Rebecca Tan

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