Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Ana has a Day-care service that operate Mondays through Fridays (240 working days in a year) and charges $22 per child (day service). The service

Ana has a Day-care service that operate Mondays through Fridays (240 working days in a year) and charges $22 per child (day service). The service includes providing the child snacks (food and other miscellaneous) with an average cost of $4.00 (per child/day). It will have two employees (annual Salary cost for each of $20,000). Each employee can manage up to 10 children (for the 2 employees the maximum capacity per day is 20 children). Monthly rent cost is $1,500. The costs each month for utilities and other fixed costs are $500. Ana also has to pay $2,000 for insurance once a year. How many children were required per day for break-even? NOTE: Do not round the answer for this exercise. If, for example, the calculated answer is 5.5 children then write 5.5 (not 5, not 6)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Practical Financial Management

Authors: William R. Lasher

7th edition

128560721X, 9781133593669, 1133593682, 9781285607214, 978-1133593683

More Books

Students also viewed these Finance questions