Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Polar Bear provides daycare for children Mondays through Fridays. Polar Bear charges each parent $580 per child per month Click the icon to view the

image text in transcribed
image text in transcribed
image text in transcribed
Polar Bear provides daycare for children Mondays through Fridays. Polar Bear charges each parent $580 per child per month Click the icon to view the monthly variable per child and fixed costs) Read the requirements Requirement 1. Calculate the breakeven point The breakeven point at the current revenue and costs per child is Requirement 2. Polar Bear's target operating income is $10,500 per month, Compute the number of children who must be enrolled to achieve the target operating children income Polar Bear would need a target quantity of children to produce a target operating income of $10.500 per month, Requirement 3. Polar Bear lost its lease and had to move to another building. Monthly rent for the new building is $2,800. In addition, at the suggestion of parents. Polar Bear plans to take children on field tripo. Monthly costs of the field trips are $1,300. By how much should Polar Bear increase foon per child to meet the target operating income of $10,500 per month, assuming the same number of children as in requirement 2? Using the number of children from requirement 2, the foo would nood to increase by lifper child to sell moot the target operating income of $10.500 per month Data table Its monthly variable costs per child are as follows: Lunch and snacks Educational supplies $ 180 30 20 Other supplies (paper products, toiletries, etc.) $ Total 230 hro Monthly fixed costs consist of the following: Rent $ 1,800 Utilities 300 Insurance 340 Jadd reas Salaries 2,410 C Print Done email Educational supplies 30 20 Other supplies (paper products, toiletries, etc.) Total $ 230 Monthly fixed costs consist of the following: Rent $ 1.800 Utilities 300 hr Insurance 340 Salaries 2,410 Miscellaneous 750 $ 5,600 Total Jad frea Print Done

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

Survey of Accounting

Authors: Thomas Edmonds, Christopher, Philip Olds, Frances McNair, Bor

4th edition

77862376, 978-0077862374

More Books

Students also viewed these Accounting questions

Question

Did you offer hard data that is verifiable? [D]

Answered: 1 week ago