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lab6_marrero

# 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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