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

rstand both themselves in depth and how society should be in order to work harmoniously.

Two of the most popular moral theories will be discussed in this essay, and one of them is the consequential theory. The overall consequential theory focuses on the consequences of the actions. Utilitarianism, especially, on top of the outcome focuses on the utility, which is happiness, pleasure and well-being of the creatures in this world based on famous philosopher Jeremy Bentham’s theory. (Potthast&Panza, 2010) The central idea of utilitarianism is to encourage people to increase as much pleasure for most people as possible. The actions to achieve this goal could be justified by the outcome. In more proper words, “does the end justify the means?” The answer is yes in utilitarianism. Similarly, although an action might not be as noble, “if you can increase the overall happiness of the world in some way, then you should.” (Potthast&Panza, 2010) While a lot other moral theories insist on principles, principles do not quite matter in utilitarianism if it is, so to speak, for the greater good. This means all methods used for approaching the best ending could be considered. Yet utilitarianism does not mean an individual should treat making themselves happy as the priority. For example, if a person has to give up on their family to save millions, giving up on their family is moral. The person has to choose the majority, in order to create happiness for the most. In addition, the definition of “pleasure” varies from person to person as well. The enjoyment in utilitarianism includes entertainment and a lot more, such as the ability to think and judge. Overall, utilitarianism is mainly about maximising happiness for most. If an action is for the good of most people, it is moral in utilitarianism.

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