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lab6_marrero - Day Care Wonders Income Statement Author...

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Day Care Wonders Income Statement Solution Author Dayani Marrero Date Created 2/22/2012 Purpose Contents Income Statement with One and Two Variable Data Tables Scenario Summary Recommendation This spreadsheet provides What-If analysis based on the  Income Statement of Jane Morales.  This What-If analysis will  help Ms. Morales determine  whether it is viable for her to start  this business.  This is a recommendation as to Ms. Morales ability to make $75,000 profit from her Day Care Center.
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Day Care Wonders Income Statement Teacher:Student Ratio Required Students Teachers Solution 1 1 Assumptions 7 2 Number of Children/Day 15 13 3 Average Days per Year 250 19 4 Teacher Cost per Year 15,000 Food per Child per Day 1.3 Effect of Varying Number of Children on Expenses and Net Income Supplies per Child per Year 25 Initial Values 6 7 8 9 10 11 12 13 14 15 Expenses $74,563 $41,525 $56,863 $57,200 $57,538 $57,875 $58,213 $58,550 $73,888 $74,225 $74,563 Annual Revenue Net Income $56,688 $10,975 $4,388 $12,800 $21,213 $29,625 $38,038 $46,450 $39,863 $48,275 $56,688 Tuition per Day 35 Annual Revenue $131,250 Annual Variable Expenses Effect on Net Income of Varying Fee and Number of Children Food Expenses 4,688 Fees 6 7 8 9 10 11 12 13 14 15 Supplies per Year 375 35 $10,975 $4,388 $12,800 $21,213 $29,625 $38,038 $46,450 $39,863 $48,275 $56,688 Teacher Cost 45,000 40 $18,475 $13,138 $22,800 $32,463 $42,125 $51,788 $61,450 $56,113 $65,775 $75,438 Total Variable Expenses $50,063 45 $25,975 $21,888 $32,800 $43,713 $54,625
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