Please provide the profit and loss statement and sales projection spreadsheet for the information below Pricing Strategy The Company has completed a thorough analysis of its competitors' pricing Keeping in mind our competition's pricing and the costs of customer acquisition, we have decided on the following pricing strategy Weekly Rates 6 weeks 4 months $200 5 12 months $180 13 24 months $160 24 months 3 years old $140 4 5 years old $120 6 weeks 4 months $200 8 Children $1600 Wk, 5 12 months $180 10 Children $1800 Wk 13 24 months $160 20 Children $ 3200 Wk 24 months 3 years old $140 40 Children $ 5600 wk 4 5 years old $120 50 Children $6000 Wk Total Weekly Revenue $ 18,200 Total Monthly Revenue $ 72, 800 Total Yearly Revenue $ 873,600 Total Employees and Director Yearly Salary $ 566,880 Balance After Subtracting $306, 720 IV FINANCIAL PLAN CHILD CARE COSTS Education Supplies Equipment (toys, books etc ) Taken care of by CCS grant MARKETING COSTS Website Advertisement (newspaper, thrifty nickels) $349 95 a month for website and website marketing domain com $750 a month in advertisements with Odessa American (Newspaper) FURNITURE KITCHEN SUPPLIES Playground Equipment Computers Fire Extinguishers Kitchen Equipment Housekeeping Supplies Office Furniture Daycare video system with WatchmeGrow system at $3500 installation and $400 a month Playground from Americanparkscompany com at $18055 00 Fire equipment through EDCO at $60 per extinguisher for 14 rooms Housekeeping supplies at $350 Commercial cooking equipment $8508 02 Office Furniture $2300 Office computers 2 at $3058 Startup food cost $5000 per month includes snacks 3sx a day, breakfast lunch and bigger snack towards end of the day ADMINISTRATIVE EXPENSES Landlines (Business Phones) Licensing Fee's Insurance Accounting Fees Professional Development $2,000 a month for insurance $200 deposit for a landline installation, $175 a month through AT T Bookkeeping through Haven Bookkeeping $330 per month Professional Development will have a pot of $500 a month to start off with BUILDING MORTGAGE SUPPLIES Deposit Inspection costs Bank loan with Bank of Odessa is $599,900 with $50K down 30 year loan at a note of $3593 71 each month Fence for outside play area $2711 through Lowes EMPLOYEE SALARY 24 Employees at 40 hours minimum wage ($11) Daycare Director $60K a year (owner) $21,120 Salary a year 24 employees $506,880 a year Directors Owners Salary $60,000 a year

The Answer is in the image, click to view ...

Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Sep 06, 2024

Please provide the profit and loss statement and sales projection spreadsheet for the information below: Pricing Strategy The Company has completed a thorough analysis of

Please provide the profit and loss statement and sales projection spreadsheet for the information below:

Pricing Strategy

The Company has completed a thorough analysis of its competitors' pricing. Keeping in mind our competition's pricing and the costs of customer acquisition, we have decided on the following pricing strategy:

Weekly Rates

6 weeks - 4 months: $200 5-12 months: $180 13-24 months: $160

24 months-3 years old: $140 4- 5 years old: $120

6 weeks - 4 months: $200 - 8 Children $1600/Wk, 5-12 months: $180 - 10 Children $1800/Wk

13-24 months: $160 - 20 Children $ 3200/Wk 24 months-3 years old: $140 - 40 Children $ 5600/wk 4- 5 years old: $120 - 50 Children $6000/Wk

Total Weekly Revenue $ 18,200

Total Monthly Revenue $ 72, 800

Total Yearly Revenue $ 873,600

Total Employees and Director Yearly Salary $ 566,880

Balance After Subtracting : $306, 720

IV. FINANCIAL PLAN

CHILD CARE COSTS Education Supplies/Equipment (toys, books etc.)	Taken care of by CCS grant
MARKETING COSTS Website Advertisement (newspaper, thrifty nickels)	$349.95 a month for website and website marketing @ domain.com $750 a month in advertisements with Odessa American (Newspaper)
FURNITURE/KITCHEN SUPPLIES Playground Equipment Computers Fire Extinguishers Kitchen Equipment Housekeeping Supplies Office Furniture	Daycare video system with WatchmeGrow system at $3500 installation and $400 a month. Playground from Americanparkscompany.com at $18055.00 Fire equipment through EDCO at $60 per extinguisher for 14 rooms. Housekeeping supplies at $350 Commercial cooking equipment: $8508.02 Office Furniture: $2300 Office computers: 2 at $3058 Startup food cost: $5000 per month includes snacks 3sx a day, breakfast lunch and bigger snack towards end of the day.
ADMINISTRATIVE EXPENSES Landlines (Business Phones) Licensing Fee's Insurance Accounting Fees Professional Development	$2,000 a month for insurance $200 deposit for a landline installation, $175 a month through AT&T. Bookkeeping through Haven Bookkeeping - $330 per month Professional Development will have a pot of $500 a month to start off with
BUILDING MORTGAGE/SUPPLIES Deposit Inspection costs	Bank loan with Bank of Odessa is $599,900 with $50K down. 30-year loan at a note of $3593.71 each month. Fence for outside play area: $2711 through Lowes
EMPLOYEE SALARY 24 Employees at 40 hours minimum wage ($11) Daycare Director @$60K a year (owner)	$21,120 Salary a year * 24 employees = $506,880 a year Directors/Owners Salary = $60,000 a year