Reference no: EM132068043
Question - Rainbow Centre provides day-care for children during weekdays from 8:00 am to 6:00 pm Monday to Friday. The monthly variable costs of the centre per child are as follows: Lunch and snacks $160, Education supplies 45, Other supplies (paper products, toiletries etc.) 35, Total $240.
In addition, the monthly fixed costs of the centre consist of: Rental $1,600, Utilities 230, Insurance 170, Salaries 2150, Miscellaneous 350, Total 4,500. Rainbow Centre charges its service to each parent $490 per child, per month. You are required to:
1. Calculate the break-even point
2. Rainbow centre's target profit is $7,000 per month, and you are required to calculate the number of children who must be enrolled to achieve the target profit.
3. Rainbow centre lost its lease and had to move to another building. Monthly rent for the new building is $2,700. At the suggestion of parents, the centre plans to take children on excursion once a month which cost the centre $1,200 per month. By how much should the centre increase fees per child to meet the target profit of$7,000 per month, assuming number of children enrolled is 46.
|
Discuss the risk-return relationship
: Rank the following three stocks by their risk-return relationship, best to worst. Rail Haul has an average return of 10 percent and standard deviation.
|
|
What is the best estimate of the current stock price
: The Ramirez Company's last dividend was $1.75. Its dividend growth rate is expected to be constant at 24% for 2 years, after which dividends are expected.
|
|
Do you agree with daniel explain your reasons
: The ending inventory value of 2014 was found to be overstated by $175,000. Do you agree with Daniel? Explain your reasons
|
|
Compute the mirr of the project using all methods
: The company uses an interest rate of 10 percent on all of its projects. Calculate the MIRR of the project using all methods.
|
|
Calculate the break-even point
: Rainbow Centre charges its service to each parent $490 per child, per month. Calculate the break-even point
|
|
Calculate the net cash flow from operating activities
: Ramakrishnan, Inc., reported 2015 net income of $80 million and depreciation of $3,300,000. The top part of Ramakrishnan, Inc.'s 2015 and 2014 balance sheets.
|
|
Specific branded hotel in the future
: If there were multiple Best Western franchised properties in the immediate vicinity, do you think he would return to this one on a future visit to the area?
|
|
How much interest is in the payment
: Ralph has just borrowed $1340 to purchase a new stereo, at a nominal rate of interest of 10.8% convertible monthly. Although he is charged interest.
|
|
Prepare appropriate journal entries to record transactions
: Prepare the appropriate journal entries to record the transactions for year including year-end adjustments. You must show your calculations to receive credit
|