Teddy Bear provides daycare for children Mondays through Fridays. Teddy Bear charges each parent $610 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. Breakeven number of children . Its monthly variable costs per child are as follows: Lunch and snacks $ 140 Educational supplies 70 20 Other supplies (paper products, toiletries, etc.) $ 230 Total Monthly fixed costs consist of the following: Rent $ 2,150 Utilities 450 Insurance 350 Salaries 2,000 750 Miscellaneous $ 5,700 Total 1. 2. 3. Calculate the breakeven point. Teddy Bear's target operating income is $11,400 per month. Compute the number of children who must be enrolled to achieve the target operating income. Teddy Bear lost its lease and had to move to another building. Monthly rent for the new building is $3,250. In addition, at the suggestion of parents, Teddy Bear plans to take children on field trips. Monthly costs of the field trips are $1,600. By how much should Teddy Bear increase fees per child to meet the target operating income of $11,400 per month, assuming the same number of children as in requirement 2