Appendix (Week 5 - Assignment) Stephon Thomas.xlsx - Appendix 1 Incremental Analysis Week 5 Case 9A Middlehurst House 1 Look at each decision separately

Appendix (Week 5 - Assignment) Stephon Thomas.xlsx -...

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Appendix 1: Incremental Analysis Week 5/ Case 9A - Middlehurst House 1. a. Age 2-3 6 20 2 3-4 8 15 1 4-5 8 15 1 5-6 10 30 1 Instructor Salaries/Class: $1,600 To calculate Incremental Costs: Salaries (# of instructors x $Instrcutor costs) Staff benefits [(Total Incremental Salries above x 10%) + (# of Instrcutors x $200)] Incremental costs b. Incremental revenue (Revenue per student x # students) Minus incremental costs: Instructor's salary Staff benefits [(10% x $salaries) + $200] Food ($1.25 x # students x # days) Variable supplies ($1 x # students) Incremental profit c. Use the new fee structure as found in (a). Is it profitable to move to smaller class Incremental revenue: Tuition Increased fees, old students (tuition x # students for each): $516 $411 Look at each decision separately, as incremental to the current situation, and eva If class size is decreased (keeping the same 80 students), what increase in tuition New Instructor Ratio (Students per 1 Instructor) Total Children Number of New Classes Without regard to (a), is it profitable to create the new class from the waiting list?
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