Question
The experts can't answer this... but I can. So here is the answer. Please post it so others can have the answer. Thank you! Hardyke
The experts can't answer this... but I can. So here is the answer. Please post it so others can have the answer. Thank you! Hardyke Group operates a local after-school recreation and activities program. The Education Department is a state governmental agency. Hardyke has an agreement with the Department to provide services to students in need for a nominal $1 per day, to be paid by the student. The government will reimburse Hardyke for the cost of providing daily services used by a student. The regular price to participate in the program is $6.60 per day. After analyzing its costs, Hardyke calculates that, with its operating deficit, the full cost of each student for a day is $9.10. All programs that Hardyke offers are unaffected by the number of students paying the nominal fee. b. Which price would Hardyke Group prefer? Solution: Cost to Hardyke- Price paid by student= Price Hardyke prefers 9.10-1= 8.10 c. Which price would the Education Department prefer? Solution: The government would prefer not to reimburse any costs = 0 d. If Hardyke provides an average of 4,600 student-days for in-need children in a given month, what is the monthly value of the difference between the prices in full capacity? Solution: The difference in preferences multiplied by the number of student days/month. (8.10-0)*4,600 = 37,260
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