ADM 626 Topic 4 Module Assignment

Miriam Boadi

Grand Canyon University : ADM626

MODULE 4

 Question 1

• . Break even unit = Fixed cost / contribution margin per unit
• . Contribution margin per unit = selling price per unit – variable cost per unit
•    Break even ticket = 400, 000 (60-10)
•    = 400,000/50
•    = 8,000 tickets
• Question 2

Variable cost VC= Cost of snacks per weekday per child x No. of children x No. of days in a week x No. of weeks

50x50x5x10= 37500

Fixed cost FC = 15000

Total cost = 15000 + 37500 = 52500

Breakeven charge per child =52500/50

                                              = $ 1050

 Question 3

(15,000x 50%) = $ 7500

Cost of serving lunch and snack each weekday for 10 weeks for 100 children = $15000

 Total VC&FC

( $7,500+ $15,000) = $22, 500

Total number in planned children 100

Revised break even $225

The breakeven price will decrease by (300-225) = $75

Question 4

Revised cost $ 7500

Weekly cost of serving lunch and snack each weekday by CCC $8 per child

Weekly cost of serving lunch and snack each weekday by CCC for 10 weeks $80 per child

Weekly cost of serving lunch and snack each weekday by CCC for 10 weeks for 100 campers $8000

 Total VC and FC ( $7,500 + $8,000) = 15,500

Total number of children 100

The new breakeven price ( $15,500/100) = $155

Question 5

The breakeven point is a point where the total revenue is equal to the total expenses

Revenue = Fixed cost + Variable Cost

P*n=F*V*n

P= Govt Funding + Tuition

Where P is price per unit, n is the number of units , V is variable cost per unit , F is the total Fixed cost

n= F(P-V)

The breakeven for this scenario is calculated as:

n= 200,000( ( 5,000 + 6,000) – 10, 000) = 200

Thus, for breakeven , enrollment of 200 students is required possibly by 1)

Funding is limited to 100, 000

Revenue = Fixed cost + Variable cost

P*n=F+V*n

Now P= G+T

Where G is govt contribution per student and T is tuition fees per student

Govt Funding + Tuition fees Collection = F+V*n

100,000+6,000*n=200,000 + 10, 000*n

6,000*n-10,000*n=200,000-100,000

Thus, it is not possible to sustain with current tuition fees of 60,000

It must be at least 10,001 to be able to sustain with enrollment being required will be 100, 000

(Possibility 2)

Variable Cost reduced to 9,500 per student

Govt Funding + Tuition fees Collection = F+V*n

5,000*n + 6,000*n = 200,000 + 9,500*n

11,000*n= 200,000+ 9,500*n

1,500*n=200,000

n= 133.33~ 134

MODULE 12

Question 1

Expense Type
FY 14
Inflation
Decrease in cost 
Others
Total
General Supplies
$69,532
$70,923.00

$70,923.00
Utilities
$152,227

$1444,616.00

$144,616.00
Leased Space
$720,000
$741,600.00

$741,600.00
Food
$50,571
$51,582.00

$51,582.00
Inspection Supplies
$327,595

$81,899.00
$81,899.00
Inspection Startup
$125,000

$0.00
Total Non-personnel
$1,444,925

$1,090,620.00

  To achieve improvement of 1% in all department , multiply the total non-personnel expense by 99% and it will be the maximum expense to incur

Therefore , 1444925* 99% = 1430376

Question 2

Expense Type
FY 2014
Budget Increase
Budget Expenses
Salaries
$1,500,257.00
$45,008.00
$1545,265.00
Fixed Benefits
$534,240.00
$625.00
$534,865.00
Variable Benefits
$262,545.00
$3,282.00
$265,827.00
Total
$2,297,042.00
$48,915.00
$2,345,957.00

• Note 1
•            Salaries: Base 1,500,257.00
•                           Cost of living increase 45,007.71
•               Total Budget salaries 1,500,257.00+ 45,007.71 = 1,545,264,71
• Note 2
•           Fixed benefits 534,240
•           FTE                   50
•           Increase in FB rate per FTE $ 12.50
•            Total Increase in FB             $ 625.00
• Note 3
•           Variable Benefits         262,545
•             Increase in benefit ( 1.25%) = ( 262,545*1.25%)
•                                                            = 3,282
• Question 4
•  a.
• • Expense Type
  • Current Year Budget
  • Nurse Practitioner Salary
  • 65,000
  • Driver & Health aid Salary
  • 45,000
  • Less: Benefits (20% of salaries
  • -22,00
  • Van Costs
  • 12,000
  • Medical Supplies
  • 9,000
  • Total Budget for current year
  • 109,000
• • b.
  • • Expense Type
    • Budget (Amounts in $)
    • Column 1
    • Nurse Practitioners Salary
    • 66,950
    • (65,000*1.03)
    • Driver & Health Aide Salary
    • 47,450
    • {(110,000*1.04)-66,950}
    • Less: Benefits
    • -22,880
    • [20% of (110,000*1.040]
    • Van costs
    • 12,000
    • Medical Supplies
    • 9,000
    • Total Budget for current year
    • 112,520

  • • Total salaries after increase will be 114,400(110,000*1.04) which includes both NPS and Driver & Health  Aide Salary. Thus , Health  Aide salary will be $47,450(114,400-$66,950) .
    • C.
    • • Expense Type
      • Budget ( Amount in $)
      • Column 1
      • Nurse Practitioner Salary
      • 97,850
      • [(65,000-30,000+60,000)*1.03]
      • Driver & Health Aide Salary
      • 47,750
      • [(110,000-30,000+60,000*1.04)-97,850]
      • Less: Benefits
      • -29,120
      • [20% of (110,000-30,000+60,000*1.04)]
      •  Van Costs
      • 12,000
      • Medical Supplies
      • 9,000
      • Total Budget for current year
      • 137,480

    • • MODULE 25
      •  Question 1
      • ASSETS
        LIABILITIES
        $0
        CASH
        $35600

        SUPPLIES
        $12453

        LANDSCAPE
        $5632

        TOTAL

        $17515

                  Question 2

        • DEBITS
        • CREDITS
        • TRANSCATION A
        • 25000
        • TRANSACTION B
        • 10000
        • TRANSACTION C
        • 2000
        • TOTAL
        • 13000