Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Today Inc. provides preschool for children Monday - Friday. Its monthly variable costs (per child) are as follows: Food $ 125 Programming Supplies 75 Operational
Today Inc. provides preschool for children Monday - Friday. Its monthly variable costs (per child) are as follows: Food $ 125 Programming Supplies 75 Operational Supplies 50 Total $ 250 Its fixed costs are as follows: Rent $ 2200 Utilities 325 Insurance 300 Salaries 2750 Other 500 Total $ 6075 Today Inc. charges $500 per child per month. Required: Calculate the breakeven point in both units and sales dollars. Today Inc. target operating income is $10,400 per month. Compute the number of children required to meet this target. Today Inc. is moving to a new location, the monthly rent will be $3,000 per month. If Today still wishes to meet is $10,400 monthly income, but can not increase the number of children, what must it do
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started