Preschool Break Even Analysis

 

To create a break-even analysis to justify increasing program quality and to evaluate your analysis.
Scenario:
As a child care center director, you are constantly looking for the perfect balance between charging tuition rates that families can afford and those that will ensure your center is profitable. Your rates are on par with comparable centers in the area, and you have decided to offer other financial incentives to encourage families to enroll. Your current monthly fixed expenses are $10,500—this includes your salary, the salary of the cook and maintenance workers, rent, utilities, and insurance. Your variable costs are $4,000 for each of the three preschool classrooms. Each classroom is expected to enroll 18 children. You decide to limit the classrooms to 16 children, lower than any competitor, to entice more families to enroll. Your board asks you to prepare a break-even analysis to determine how much tuition would need to increase to offset this loss of enrollment.

1. Make a spreadsheet showing your current breakeven point when you have 18 children in the classroom and the breakeven point at 16 children per classroom. How much would tuition have to increase to break even?

Sample Solution

society. Natural life is so beautiful. Why do people join the political society and be bound by political power? This is because there are three kinds of defects in the natural state: firstly, in the natural state, there is a lack of a formulated, stable and well-known law, which is the common standard of right and wrong and the common yardstick for judging all disputes between them. Secondly, In the natural state, there is a lack of a well-known and impartial judge who has the power to adjudicate all disputes in accordance with the established law. Thirdly, In the natural state, there is often a lack of power to support the correct judgment and make it properly enforced. Therefore, people are willing to give up the right of punishment which they exercise independently and leave it to the designated person among them to exercise it exclusively. The exercise of this power of punishment can not be arbitrary, but must be exercised in accordance with the rules of political and social consensus, or the rules of unanimous consent of their authorized representatives. This is the origin of legislative and administrative power, and the reason for the emergence of the government and the political society itself.

The purpose of the government is to protect private property. As long as a man separates anything from its natural state of existence, it has been mingled with his labor, that is, with all his own things, and thus it becomes his property. In other words, labor adds something to the natural things so that they become the private property of workers. Labor creates wealth, and money expands wealth. People have property rights in the natural state. The purpose of the government after its establishment is to protect private property, and it must not be infringed on. Therefore, without the consent of the people themselves or their representatives, the government should never impose taxes on the people’s property.

Rule of law and decentralization. The state must be governed by formally promulgated, long-term and effective laws, rather than by temporary arbitrary orders. Once the law is enacted, everyone must obey it equally, no matter whether rich or poor, noble or low. No one can evade the restraint and sanction of the law under

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