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Mary Doe Day Care Centre Financial Statement Analysis

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Data Analytics
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Trine University
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Mary Doe-Day Care Centre Financial Statement Analysis
Name
Course
Institutional Affiliation
Date of Submission

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Findings and Analysis of Profitability in Operating Day Care Center
Mary's profit objective of $75,000 is based on the findings of this study.
The monetization strategies are based on a variety of parameters, including the number of
students and the additional expenses for every student.
The tuition charge per student is estimated to be $50.
Even if there are no students, fixed expenditures of $24,500 must be committed. This is
an inevitable expense.
What-if analysis employing one and two varying data tables allows the user to quickly
see what the predicted profitability scenario necessitates. As such, changes in the number of
students have an impact on expenditures and profitability.
The costs of 6-7 students are shown in this data table to vary greatly. It consists of a fixed
and a variable component. Regardless of the number of students, the fixed expenditures of
$24,500 must be paid. Nevertheless, because of its nature, the variable component changes
considerably at different levels, profitability at those stages. This is due to the fact that teachers'
charges account for the majority of variable expenditures. The teacher-to-student ratio is 1:6.
Whenever 7 students come, a teacher is hired, and the profitability increases to 8-12 students.
Nevertheless, we are concerned with more than just profit. To keep the business going,
the owner needs a greater profit. The day care is still lucrative if the number of pupils is reduced
to 6, but it falls short of the owner's expectations. According to the data table, she will be able to
meet her objective if she has at least 15 pupils, which is much more than twice her current
estimate of 7.

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1 Mary Doe-Day Care Centre Financial Statement Analysis Name Course Institutional Affiliation Date of Submission 2 Findings and Analysis of Profitability in Operating Day Care Center • Mary's profit objective of $75,000 is based on the findings of this study. • The monetization strategies are based on a variety of parameters, including the number of students and the additional expenses for every student. • The tuition charge per student is estimated to be $50. • Even if there are no students, fixed expenditures of $24,500 must be committed. This is an inevitable expense. • What-if analysis employing one and two varying data tables allows the user to quickly see what the predicted profitability scenario necessitates. As such, changes in the number of students have an impact on expenditures and profitability. The costs of 6-7 students are shown in this data table to vary greatly. It consists of a fixed and a variable component. Regardless of the number of students, the fixed expenditures of $24,500 must be paid. Nevertheless, because of its nature, the variable component changes considerably at different levels, profitability at those stages. This is due to t ...
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