Requirements Data Table Instit servi 180 indiv profil ildren of private 80.000, 2-2013 S pplies costs are variable with respect to inistrative staff and facilities costs are fixed hd 3,600 student-months, an additional 100 student-months of education were fered under the contract with Revenues: The Litte Plano School Contract S 180.000 176,000 Private students 1. Compute the following using cost information from year 2012-2013 operations: Fixed cost per year Variable cost per student-month 2. Suppose that in 2013-2014 The Litte Piano School decreased its use of IAM to 140 students that is, 1,260 student-months). The fixed contract price of $180,000 was still paid. If everything else stayed as it was in 2012-2013, what profit or loss would be made in 2013-2014? 3. Suppose that at the beginning of 2013-2014 The Litte Piano School decided not to renew ils contract with IAM, and the managerrent of IAM decided to try to maintain business as usual with only private students. How many students (each signing up for 9 months) would IAM require to continue to make a profit of $5,000 per year? Total revenues S 356.000 Regi Inth using Fixed S 89,000 Expenses: Administrative staff Teaching staff Facilities Varia 92,500 150,500 16,000 of AM to Read what ing else stayed as it was in 2012-2013 Supplies Print Done 348.000 Com Total expenses he Litte Plano scroor decreased TS USE UITAU T40 Stoenes urat TS, 1.200 SODec-mon, Dar everyormy else stayed the same from 2012-2013. TAN TU , . S 8,000 Tota Profit Varie Tota Print Done Fixel Profit (Loss) Requirement 3. Suppose that at the beginning of 2013-2014 The Litte Piano School decided not to renew its contract with IAM, and the management of IAM decided to try to maintain business usual with only private students. How many Enter any number in the edit fields and then continue to the next question. ? Save for Later Institute of Art and Music Company (LAM) provides instrumental music education to children of all ages. Payment for services comes from two sources: (1) a contract with The Litte Piano School to provide private music lessons for up to 180 band students a year (where a year is 9 months of education) for a fixed fee of $180,000, and (2) payment from Individuals at a rate of $110 per month for 9 months of education each year. In the 2012-2013 school year, LAM made a profit of $8,000 on revenues of $356,000: (Click the icon to view the data.) IAM conducted an activity analysis and found that teaching staff wages and supplies costs are variable with respect to student-months. (A student-month is one student educated for 1 month.) Administrative staff and facilities costs are fixed within the range of 2.800-3,200 student-months. At volumes between 3,200 and 3.600 student-months, an additional facilities charge of $9,000 would be incurred. During the last year, a total of 3.100 student-months of education were provided, 1,800 of which were for private students and 1,500 of which were offered under the contract with The Litte Piano School. Read the requirements Requirement 1. Compute the fixed cost per year and the variable cost per student-month using the cost information from the 2012-2013 year of operations. Fixed cost per year amount to s Variable cost per student-month amount to $0. Requirement 2. Suppose that in 2013-2014 The Litte Piano School decreased its use of IAM to 140 students (that is, 1.260 student-months). The fixed contract price of $180,000 was still paid. If everything else stayed as it was in 2012-2013, what profit or loss would be made in 2013-2014? Complete the table below to calculate the profit or loss for 2013-2014 assuming that The Litte Piano School decreased its use of IAM to 140 students (that is, 1,260 student-months) but that everything else stayed the same from 2012-2013. Total revenues Variable costs Total contribution margin Fixed costs Profit (Loss) Requirement 3. Suppose that at the beginning of 2013-2014 The Litte Piano School decided not to renew its contract with IAM, and the management of LAM decided to try to maintain business students (each signing up for 9 months) would IAM require to continue to make a profit of $8,000 per year? (Round the required number of students up to the next whole number.) usual with only private students. How many IAM would require students to continue to make a profit of $8.000 per year. Enter any number in the edit fields and then continue to the next