To help in your analysis, details of space utilization are as follows:

Infant Care	850 sqft
Toddler Care	1375 sqft
Pre-K Care	1375 sqft
School District	1750 sqft
Head Start	2650 sqft
Total Usage	8000 sqft

Exhibit 1: Department of Human Services Excerpt from Childcare Regulations

Staff ratio. The staff-to-child ratio shall be as follows:

Age of Children	Minimum Ratio of Staff to Children
Two weeks to two years	One to every 4 children
Two years	One to every 6 children
Three years	One to every 8 children
Four years	One to every 12 children
Five years to ten years	One to every 15 children
Ten years and over	One to every 20 children

Exhibit 2:

Excerpt from Building Lease

IT IS AGREED this 1st day of July, 20xx, by and between Appaloosa County Day Care Center, Inc., hereinafter referred to as Landlord; and Head Start, hereinafter referred to as Tenants:

That the Landlord hereby leases to the Tenants and the Tenants hereby lease from the Landlord the following premises situated in Appaloosa County, USA, to wit:

Three rooms and an office (2650 sq. ft.) in the ACDC day care center as specified in the building plans, in consideration of the mutual promises of the parties herein and upon the terms, provisions, and conditions following:

1. LEASE PERIOD. The term of this lease shall be for a period of twelve months starting July 1, 20xx.

2. RENT. Tenants shall pay rental for the period as follows; $530.00 on the 1st day of July and $530.00 on the 1st day of each month thereafter during the lease period; said rental thus at all times to be paid in advance for the month. The Landlord will pay all utilities, maintenance, and custodial services on the building. The Landlord reserves all remaining rooms for their use or lease.

5. Calculate the activity or cost-driver rates for each cost pool. Note: You should develop rates that will allocate costs to ACDC programs and/or tenants only. You should not allocate any costs back to general administration.

Table 5: Square Footage
ACDC	3,600
School District	1,750
Head Start	2,650
Total	8,000

6. Using the services or programs identified in Question 1, determine service or program revenues, assign the costs to the service or programs, and calculate service or program profitability. A spreadsheet may be helpful with this task.

Table 6: Popultion	Total number of students enrolled	Total staff employed	Average daily attendance of students	Average daily staffing of employees	Total average daily population
ACDC
Administrator	--	1	--	1	1
Kitchen	--	1	--	1	1
Infant Care	11	3	8	2	10
Toddler Care	35	5	22	4	26
Pre-K Care	32	4	20	3	23
School district	--	--	12	6	18
Head start	--	--	40	6	46
Total	78	14	102	23	125