Q.4. Seeing a need for childcare in the community, you decide to launch your own daycare service in April this year. Continuing this in May will depend upon whether or not you are able to break even in April. You decide to watch each child for $12 a day. You come up with the following financial information for April:

1. (a) Given that April will have 20 working days on which people are likely to send their kids to your daycare, how many kids per day you must watch in order to break even in April?

2. (b) In the month of May, landlord raised the rent by $100. If you want to make a profit of 100 in May, how many kids must you watch? (Assume five office holidays for parents in May)

Charges (per child per day) $12 Expenses (per month) Utilities 400 Rent of day care space 200 $600 Expenses (per day) Meals Snacks $4.00 Per child 2 2