The ABC Daycare is a small business childcare facility, opened and operated by its owner who uses her checkbook without any other type of accounting records. The owner has analyzed and determined normal operational costs are:Variable Costs $$200$ per child per monthFixed Costs $$3200$Revenues:Children charged $$600$ per monthThe facility can care for $32$ children, but currently only $10$ children are served.The owner desires to double the number of children served each month to $20$ students. To achieve this the owner is willing to spend an additional $$1000$ per month on advertising.Required:Prepare a report to the manager responding to each of her questions. Use cost volume profit concepts in developing your response.What is the Company's current monthly profit? $($SHOW YOUR CALCULATIONS!$)$What will their monthly profit be if they lose two children? What is the significance of only serving $8$ students? $($SHOW YOUR CALCULATIONS!$)$If additional advertising is purchased, and the number of children doubles, what is the new profit? What is the new breakeven point? $($SHOW YOUR CALCULATIONS!$)$Should the owner spend the additional $$1,000?$