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Bright Kids Nursery provides pre-school education to children. Its monthly variable costs per child enrolled are: Lunch and snacks Education supplies Other supplies Total $1,000
Bright Kids Nursery provides pre-school education to children. Its monthly variable costs per child enrolled are: Lunch and snacks Education supplies Other supplies Total $1,000 750 250 $2,000 Monthly fixed costs consist of: Rent Utilities Insurance Salaries Miscellaneous Total $20,000 3,000 3,000 25,000 5,000 $56,000 The tuition fee for each child is $6,000 per month. (6 Required: (a) Compute the break-even quantity. (b) Bright Kids Nursery's target operating income is $104,000 per month. Compute the number of children that must be enrolled to achieve the target operating income. (c) Bright Kids Nursery has to move to another building with a monthly rental of $30,000. In addition, Bright Kids Nursery is planning to take children on field trips. Monthly costs of the field trips are $12,000. How much should Bright Kids charge as the monthly tuition fee per child to meet the target operating income of $104,000 per month, assuming the same number of children as in (b) above. (10
Bright Kids Nursery provides pre-school education to children.
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