Maurice Tutor

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Teaching Since: May 2017
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    Argosy University/ Phoniex University/
    Nov-2005 - Oct-2011

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  • Professor
    Phoniex University
    Oct-2001 - Nov-2016

Category > Accounting Posted 25 Jul 2017 My Price 7.00

Snow Leopard Daycare

CVP, target operating income, service firm Snow Leopard Daycare provides daycare for children Mondays through Fridays. Its monthly variable costs per child are as follows: 
Lunch and snacks $150
Educational supplies 60
Other supplies (paper products, toiletries, etc.) 20
Total$230
Monthly fixed costs consist of the following:
Rent $2,150
Utilities 200
Insurance 250
Salaries 2,350
Miscellaneous 650
Total $5,600
Snow Leopard charges each parent $580 per child.
Required 
1. Calculate the breakeven point.
2. Snow Leopard’s target operating income is $10,500 per month. Compute the number of children who must be enrolled to achieve the target operating income.
3. Snow Leopard lost its lease and had to move to another building. Monthly rent for the new building is $3,150. At the suggestion of parents, Snow Leopard plans to take children on field trips. Monthly costs of the field trips are $1,300. By how much should Snow Leopard 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?

Answers

Maurice Tutor
(5)
Status NEW Posted 25 Jul 2017 12:07 AM My Price 7.00

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