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
$35600SUPPLIES
$12453LANDSCAPE
$5632TOTAL
$17515
Question 2
- DEBITS
- CREDITS
- TRANSCATION A
- 25000
- TRANSACTION B
- 10000
- TRANSACTION C
- 2000
- TOTAL
- 13000
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