Question

May I please get a step-by-step solution?

Let’s Learn! Child Center operates from Monday through Friday. Let’s Learn! provides childcare and educational services for inner-city kids between the ages of nine months and five years. Let’s Learn! has fixed staff expenses of $26,000 per week. Rent for the organization costs $5000 per week and utilities and other fixed costs total $3000 each week. Let’s Learn! charges parents $8 per day for each child who attends the program. The city pays the organization $30,000 per week out of its early childhood education fund. It costs Let’s Learn! $3 per day for supplies and snacks for each child. The Center also offers an optional early-reading program for children over the age of three. Parents pay an additional $4 per day to enroll a child in the reading program. It costs the center an additional $5 per day for each child in the program. Thirty percent of the children attending the center are enrolled in the reading program. How many children have to come to Let’s Learn! Each week for it to break even?

Answer 1

TO CALCULATE BREAKEVEN POINT, WE NEED TO BUILD UP REVENUE SIDE AND EXPENSE SIDE

REVENUE SIDE = 30000 +8 (X)(5) + 4 (0.30X)(5) = 30000 + 40X + 6X = 30000 + 46 X

ABOVE EQUATION : X = NO OF CHILDREN , 5 = NO OF WORKING DAYS, 0.30 X = THOSE WHO OPT FOR READING ROOM, WHICH IS 30% OF ALL CHILDREN

EXPENSE SIDE = 26000 + 5000 + 3000 + 3(X)(5) + 5 (0.30X)(5) = 34000 + 15 X + 7.5 X = 34000 + 22.5 X

NOW EQUATE TWO EQUATIONS TO GET BREAKEVEN POINT

30000 + 46 X = 34000 + 22.5 X

46 X - 22.5 X = 34000 -3000

23.5 X = 4000

X = 170.212 = 170 CHILDREN

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