e following questions should guide you in the identification of important case issues.

1)

What does the Petersburg office hope to achieve by opening the Alta Vista day-care center? In other words, what type of

program has Mr. Schaefer planned, and why does he think it would benefit both the Petersburg office and Alta Vista?

2)

What challenges does the company face in opening the day-care center? Where do the uncertainties lie? How could these

individuals or organizations mitigate the challenges and uncertainties that you identify?

3)

How would you describe the cost structure of the Alta Vista day-care center? In other words, what costs from Attachment A

can be managed; can the center avoid any of the variable or fixed costs? What costs are missing from Attachment A, if any?

4)

What is the break-even number of students needed to enroll

without

the administrative fee to the VOA office? Should the office

charge this fee to the day-care center in the short term? In the long term? Is charging the fee consistent with the VOA's

mission?