Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

White Rhino provides daycare for children Mondays through Fridays. White Rhino charges each parent $580 per child per month EEB (Click the icon to view

image text in transcribed

White Rhino provides daycare for children Mondays through Fridays. White Rhino charges each parent $580 per child per month EEB (Click the icon to view the monthly variable per child and fixed costs.) Read the requirements Data Table Requirements Its monthly variable costs per child are as follows $125 85 20 $ 230 1. Calculate the breakeven point. 2. White Rhino's target operating income is $10,500 per month. Compute the Lunch and snacks Educational supplies Other supplies (paper products, toiletries, etc.) Total number of children who must be enrolled to achieve the target operating income 3. White Rhino lost its lease and had to move to another building. Monthly rent for the new building is $2,850. In addition, at the suggestion of parents White Rhino plans to take children on field trips. Monthly costs of the field trips are $1,300. By how much should White Rhino increase fees per child to meet the target operating income of $10,500 per month, assuming the same number of children as in requirement 2? Monthly fixed costs consist of the following Rent Utilities Insurance Salaries Miscellaneous Total $ 1,850 250 400 2,350 750 $ 5,600 PrintDone click Check Answer Clear All Check

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditing And Assurance Services

Authors: David Ricchiute

7th Edition

0324117760, 978-0324117769

More Books

Students also viewed these Accounting questions

Question

Presentation Aids Practicing Your Speech?

Answered: 1 week ago

Question

Effective Delivery Effective

Answered: 1 week ago