Q15Q4

Exercise 15-30 (Algo) Evaluate Transfer Pricing System (LO 15-2, 3) Hardyke Group operates a local after-school recreation and activities program. The Education Department is a state governmental agency. Hardyke has an agreement with the Department to provide services to students in need for a nominal \$1 per day, to be paid by the student. The government will reimburse Hardyke for the "cost" of providing daily services used by a student. The regular price to participate in the program is $5.40 per day. After analyzing its costs. Hardyke calculates that, with its operating deficit, the full cost of each student for a day is $7.90. All programs that Hardyke offers are unaffected by the number of students paying the nominal fee. Required: b. Which price would Hardyke Group prefer? Note: Enter your answer to 2 decimal places. c. Which price would the Education Department prefer? Note: Enter your answer to 2 decimal places. Leave no cells blank - be certain to enter " 0 " wherever required. d. If Hardyke provides an average of 3,400 student-days for in-need children in a given month, what is the monthly value of the difference between the prices in full capacity