Please help in solving requirements 1-3
Luke Morrison opened Luke's Corner, a small day care facility, just over 2 years ago. After a rocky start, Luke's Comer has been thriving Morrison is now preparing a bucket for November 2007. Monthly fixed costs and other data for Luke's Corner are as follows: (Click the icon to view the monthly fixed costs.) (Click the icon to view the other data) Read the requirements - Requirement 1. What is the break-even point for November in child-days? In revenue dollars? Begin by determining the formula, and then enter the amounts to calculate the break-even point in child-days (units). Break-even in child-days Requirements Data table $ pp Rent Salaries Other fixed costs 1,400 140 Total fixed costs 2,340 1. What is the break-even point for November in child-days? In revenue dollars? 2. Suppose attendance for November 20X7 is equal to the average, resulting in 22 x 8 = 176 child-days. What amount will Morrison have left after paying all expenses? 3. Suppose both costs and attendance are difficult to predict Compute the amount Morrison will have left after paying all expenses for each of the following situations. Consider each case independently. a. Average attendance is 9 children per day instead of 8, generating 199 child-days. b. Variable costs increase to S14 per child-day. c. Rent increases by $220 per month. d. Morrison spends $300 on advertising (a fixed cost) in November, which increases averige daily attendance to 9.5 children e. Morrison beging charging $33 per day on November 1, and average daly attendance slips to 7 children. Print Done Print Done Luke Morrison opened Luke's Corner, a small day care facility, just over 2 years ago. After a rocky start, Luke's Comer has been thriving Morrison is now preparing a bucket for November 2007. Monthly fixed costs and other data for Luke's Corner are as follows: (Click the icon to view the monthly fixed costs.) (Click the icon to view the other data) Read the requirements - Requirement 1. What is the break-even point for November in child-days? In revenue dollars? Begin by determining the formula, and then enter the amounts to calculate the break-even point in child-days (units). Break-even in child-days Requirements Data table $ pp Rent Salaries Other fixed costs 1,400 140 Total fixed costs 2,340 1. What is the break-even point for November in child-days? In revenue dollars? 2. Suppose attendance for November 20X7 is equal to the average, resulting in 22 x 8 = 176 child-days. What amount will Morrison have left after paying all expenses? 3. Suppose both costs and attendance are difficult to predict Compute the amount Morrison will have left after paying all expenses for each of the following situations. Consider each case independently. a. Average attendance is 9 children per day instead of 8, generating 199 child-days. b. Variable costs increase to S14 per child-day. c. Rent increases by $220 per month. d. Morrison spends $300 on advertising (a fixed cost) in November, which increases averige daily attendance to 9.5 children e. Morrison beging charging $33 per day on November 1, and average daly attendance slips to 7 children. Print Done Print Done
