Specifically, Mr. Schaefer wants you to do the following: PART 1. Prepare a cost-volume-profit (CVP) analysis of the proposal's financial implications. 1. Specifically, prepare an analysis that includes the projected revenue, variable costs, and fixed costs for enrollment levels of 20, 25, 30 and 37 students using the monthly projections in Attachment A of the case. 2. Then, compute the weighted average contribution margin (CM) per student (computed as the total CM divided by the number of students enrolled) and 3. The number of students that need to enroll at each of the four levels of enrollment for the center to break even. For this analysis, I have provided an Excel template in which I have already sorted variable and fixed costs: I have included the raw data. Note: Your enrollment information has already been weighted so you will not need to calculate weights for your weighted average CM Analysis of Financial Projections - With Given Case Data Total Number of Students 25 30 20 37 2.550 1,333 700 3.400 1.867 700 4,250 2,400 700 5,383 3,200 700 60 40 40 642 75 50 50 835 90 60 60 1,029 111 74 74 1,300 Revenue: 2-3 year olds ($17 per day x 250/12 x 8096) 4-5 year olds (S16 per day x 250/12 x 80%) S year olds (S7 per day x 250/12 x 8096) Total revenue Variable costs: 8102 Educational supplies ($3 per student) 18103 Recreational supplies (S2 per student) 8105 Housekeeping supplies (32 per student) 18201 Administrative expense (14% of total revenue) Total variable costs Contribution margin (CM) Fixed costs: 7000 Salaries, total 7103 Employee benefits 7201 FICA taxes 8001 Employee fees paid 8004 Staff development training 18005 Help wanted ads 8010 Membership in other organizations 8101 Medical first aid kit supplies 8104 Food and beverage supplied by USDA 8106 Office supplies 8111 Telephone expense 8112 Postage 18401 Rent 8402 Equipment maintenance 8404 Mortgageote/loan interest 8406 Utilities, total 8501 General insurance 8502 Workmen's compensation 3,126 175 239 11 33 9 4 3 3.928 700 300 11 33 9 4 3 4,665 875 357 16 33 5,402 1,050 413 16 33 9 4 3 0 9 4 0 5 140 25 0 22 0 5 140 25 0 22 3 0 10 140 30 0 22 10 140 30 0 22 0 0 0 240 92 240 92 13 210 92 15 0 240 92 19 10 642 835 1,029 1,300 3.928 700 300 11 33 9 4 4,665 875 357 16 33 9 5.402 1,050 413 16 33 9 4 4 3 3,126 175 239 11 33 9 4 3 0 5 140 25 0 22 0 240 92 10 25 2 3 0 5 140 25 0 22 0 10 140 30 0 22 0 8201 Administrative expense (14% of total revenue) Total variable costs Contribution margin (CM) Fixed costs: 7000 Salaries, total 7103 Employee benefits 17201 FICA taxes 18001 Employee fees paid 8004 Staff development training 800S Help wanted ads 8010 Membership in other organizations 8101 Medical/first aid kit supplies 8104 Food and beverage supplied by USDA 8106 office supplies 8111 Telephone expense 18112 Postage 8401 Rent 8402 Equipment maintenance 8404 Mortgageote/loan interest 8406 Utilities, total 8501 General insurance 18502 Workmen's compensation 8601 Outside printing 8606 Subscriptions and publications 18702 Van maintenance/insurance/gas 8706 Staff mileage 19402 Miscellaneous expenses 19500 Depreciation Total fixed costs Total variable and fixed costs Operating profit (los) Weighted average CM per student Number of students needed to break even Round up break even students Total CM without administrative fee Weighted average CM per student w/o admin, fee Breakeven number of students w/o admin. fee Round up break even students 0 3 0 10 140 30 0 22 0 240 92 15 25 2 45 48 10 0 240 92 13 25 2 45 48 10 0 240 92 19 25 45 48 45 48 10 0 10 0