Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

QUESTION 2 (5 Marks) Koala Bear Day-care provides day-care for children from Mondays through Fridays. Its monthly variable costs per child are: Lunch $100 Educational

image text in transcribed
QUESTION 2 (5 Marks) Koala Bear Day-care provides day-care for children from Mondays through Fridays. Its monthly variable costs per child are: Lunch $100 Educational supplies Other supplies (paper products, toiletries, etc.) 75 25 Total $200 Monthly fixed costs consist of: Rent $2,000 Utilities (electricity, water, telephone expenses) 300 Insurance 300 Salaries 2,500 Miscellaneous 500 Total $5,600 Koala Bear charges each parent $600 per child. REQUIRED: A. Calculate the break-even point. (1 Marks) B. Koala Bear's target profit is $10,400 per month, calculate the number of children who must be enrolled to achieve the target profit (1 Marks) C. Koala Bear lost its lease and had to move to another building. Monthly rent for the new building is $3,000. At the suggestion of parents, Koala Bear plans to take children on field trips. Monthly costs of the field trips are $1,000. By how much should Koala Bear increase fees per child to meet the target profit of $10,400, assuming the same number of children as in requirement B? (1 Marks) D. How can a company with multiple products calculate its break-even point? Discuss and support your discussion - 1 robert-xythos -ap-soute 98248087c 3 18125a3cbdab22054335617 558 Page 4 of 5

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

More Books

Students also viewed these Accounting questions