Snow LeopardSnow Leopard provides daycare for children Mondays through Fridays Snow LeopardSnow Leopard charges each parent $ 630$630 per child per month LOADING (Click the icon to view the monthly variable per child and fixed costs )Read the requirements LOADING Requirement 1 Calculate the breakeven point Determine the formula used to calculate the breakeven quantity, then calculate the number of children that must be enrolled to break even Fixed costs Contribution margin per child Breakeven number of children $6,300 $420 15 Requirement 2 Snow LeopardSnow Leopard's target operating income is $ 10 comma 500$10,500 per month Compute the number of children who must be enrolled to achieve the target operating income Determine the formula used to calculate the quantity required to achieve the target income, then enter the amounts to calculate the number of children who must be enrolled to achieve the target income Target ( Fixed costs Target operating income ) Contribution margin per child quantity ( $6,300 $10,500 ) $420 40 Requirement 3 Snow LeopardSnow Leopard lost its lease and had to move to another building Monthly rent for the new building is $ 3 comma 150$3,150 In addition, at the suggestion of parents, Snow LeopardSnow Leopard plans to take children on field trips Monthly costs of the field trips are $ 1 comma 400$1,400 By how much should Snow LeopardSnow Leopard increase fees per child to meet the target operating income of $ 10 comma 500$10,500 per month, assuming the same number of children as in requirement 2 Determine the formula used to calculate the fee increase per child, then enter the amounts to calculate the increase needed to meet the target operating income Increase in fee per child Its monthly variable costs per child are as follows Lunch and snacks $155 Educational supplies 30 Other supplies (paper products, toiletries, etc ) 25 Total $210 Monthly fixed costs consist of the following Rent $1,950 Utilities 200 Insurance 340 Salaries 3,060 Miscellaneous 750 Total $6,300

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Snow LeopardSnow Leopard provides daycare for children Mondays through Fridays. Snow LeopardSnow Leopard charges each parent $ 630$630 per child per month. LOADING... (Click the

Snow LeopardSnow Leopard

provides daycare for children Mondays through Fridays.

Snow LeopardSnow Leopard

charges each parent

$ 630$630

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.

Determine the formula used to calculate the breakeven quantity, then calculate the number of children that must be enrolled to break even.

Fixed costs	/	Contribution margin per child	=	Breakeven number of children
$6,300	/	$420	=	15

Requirement 2.

Snow LeopardSnow Leopard's

target operating income is

$ 10 comma 500$10,500

per month. Compute the number of children who must be enrolled to achieve the target operating income.

Determine the formula used to calculate the quantity required to achieve the target income, then enter the amounts to calculate the number of children who must be enrolled to achieve the target income.

							Target
(	Fixed costs	+	Target operating income	) /	Contribution margin per child	=	quantity
(	$6,300	+	$10,500	) /	$420	=	40

Requirement 3.

Snow LeopardSnow Leopard

lost its lease and had to move to another building. Monthly rent for the new building is

$ 3 comma 150$3,150.

In addition, at the suggestion of parents,

Snow LeopardSnow Leopard

plans to take children on field trips. Monthly costs of the field trips are

$ 1 comma 400$1,400.

By how much should

Snow LeopardSnow Leopard

increase fees per child to meet the target operating income of

$ 10 comma 500$10,500

per month, assuming the same number of children as in requirement 2?

Determine the formula used to calculate the fee increase per child, then enter the amounts to calculate the increase needed to meet the target operating income.

	/		=	Increase in fee
	/		=		per child

Its monthly variable costs per child are as follows:
Lunch and snacks	$155
Educational supplies	30
Other supplies (paper products, toiletries, etc.)	25
Total	$210

Monthly fixed costs consist of the following:
Rent	$1,950
Utilities	200
Insurance	340
Salaries	3,060
Miscellaneous	750
Total	$6,300