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Please see the attachments and advise. Please show calculations: Questions 2. 3. 4. 5. 6. 7. 8. 9. Compute the cost of a single preschool
Please see the attachments and advise. Please show calculations:
Questions 2. 3. 4. 5. 6. 7. 8. 9. Compute the cost of a single preschool class and a single birthday party using the current cost sys tem. Would recommend that TRU continue to allocate the building-related costs only to the preschool program? What alternative allocation method would you suggest? Justify answer. Ignore consideration of excess capacity discussed in question 3 below for this answer. Please discuss any additional inforlation that you feel is needed. For three months each year (JuneAugust), the school building is largely unused except for the birthday parties. This represents approxmmately 60 days, or 360 additional classes that could be run but are not. How should TRU account for this excess capacity? Please explam why you recon-Lmend this method. Do you agree with TRU's allcuzation method for salaries, supplies, and food ? Why or why not? Be specific about any alternative allocation methods that you would consider. Do you agree with TRU's decision not to allcu:ate the cost of advertising? Why or why not? Be specific about any alternative allocation methods that you would consider. Compute the cost per class meeting and per birthday party under the assunmptions that you have made. How could TRU use the infornmation from the revised cost infor-n-tation to enhance profitability? Briefly explain the change in the average revenues per class (fronm $240 to 3270 per class bet-vveen last year and this year). W'hat other infortnatton would you collect to help explain the variation? The board has an increased concern about nmaintaining control of TRU as it expands. Until now, it has not used a fornyal control system. What control systenu, if any, would you suggest that it establish? Be sure to clearly explain answer thoroughly.
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