## Answers

November in child days 1) Bereak even point for & stev in revenue dollall.

Fixed cost fixed to Break even point (days) = contribution per child day. sto - $ 2340 $30-$12 $2340 $18 = 130 child days (evenue, fixed Cost Break even point dollar! contribution malgin percentage contribution malgin % = (py statio) 0 Contribution X100 sales Goy X100 = $30 62340 BEP (revenue) = $3900 60%

Revenue (176 * 5 280 $30) (-) Variable Cost 6176 x$12) = (2119). - fixed cost - (2340) 828 profit :. If attendance is 1766. then left with $828 after paying mesrison have! all expenses (@w average attendance is instead of 8, generating a children 198 child per day days.

Ansi Revenue = $30 (-) vaziabh cost = $12) con tobution (a) $18 attendance (6) 198 3564 Total contribution caxb) (2340) (7 fixed cost profit 1224 merrison is left with $ 1224.

b) Variable cost = $iu per child day Revenue $30 (-) Variable cost $14) contribution per $16 child day child days 176 (22x8) rotal contribution 2016 W fixed cost (2340) profit 476 : merrison is left with $476 c) Rent increases by $220 per mont Revenue (~) Variable cost contribution per child dan child days $12) $18 176 3168 Total contribution (-) lixed 11 eo cost cost (2340+220) 608 profit

Revenue (-) variable cost = : $30 $12) 209 contribution per child day child days (22x915) Total contribution (- fixed cost catto 2340+ 300) 3762 (2640) 11 22 pocofit Revenue variable cost = = $30 $33 $12) 154 contribution per child day child days (2247) Total con tobution (fixed cost - 3234 = (2340) 894 profit

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