Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Click to see additional instructions As the director of a new charter school, you have secured a $200,000 foundation grant to support the program throughout

image text in transcribed
Click to see additional instructions As the director of a new charter school, you have secured a $200,000 foundation grant to support the program throughout the year The charter school will operate for 40 weeks out of the year and enroll 400 students per year. You will take out a $150,000 loan with a 3.2% annual interest rate. The entire proceeds of the loan will be used to purchase equipment and furniture with an estimated useful lifetime of 10 years and a salvage value of $10,000. Rent and utilities on the school's building will cost $6,000 per month, which the school pays year-round (i.e., 12 months per year). The school's annual insurance premium will cost $100,000. Salaries and benefits for all of the school's staff will total $180,000 per year. Food and other supplies for the school's students will total $8,000 per student per year [Note: Round your numbers to TWO decimal places e.g. 32.12 A) What is the tuition that must be charged per student per week if the goal is to break-even?$ B) What is the tuition that must be charged per student per week if the target profit for the year is $40,000?s C) Total fixed costs per week are: $ D) Increase in which of the following variables would result in your answer to part (A) increasing? 1. Variable Cost 2 Fixed Revenues 3. Quantity Write the number corresponding to the correct option e.g. 1 or 2 or 3

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

50 + Fun Financial Accounting Cases

Authors: Thomas E. McKee

1st Edition

1257824538, 978-1257824533

More Books

Students also viewed these Accounting questions

Question

Why is multiplexing so cost-effective?

Answered: 1 week ago