Hardyke Group operates a local after-school recreation and activities program. The Education Department is a state governmentalagency. Hardyke has an agreement with the Department to provide services to students in need for a nominal $1 per day, to be paidby the student. The government will reimburse Hardyke for the "cost" of providing daily services used by a student.The regular price to participate in the program is $6.70 per day. After analyzing its costs, Hardyke calculates that, with its operatingdeficit, the full cost of each student for a day is $9.20. All programs that Hardyke offers are unaffected by the number of studentspaying the nominal fee.Required:b. Which price would Hardyke Group prefer?Note: Enter your answer to 2 decimal places.c. Which price would the Education Department prefer?Note: Enter your answer to 2 decimal places. Leave no cells blank - be certain to enter "O" wherever required.d. If Hardyke provides an average of 4,700 student-days for in-need children in a given month, what is the monthly value of thedifference between the prices in full capacity?Answer is complete but not entirely correct.b. Price$5.70per dayc. Price$1.00per dayd. Difference$26,790per month

The objective of the question is to determine the preferred price for Hardyke Group and the…

Answered: Hardyke Group operates a local…

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter2: Income Tax Concepts

Section: Chapter Questions

Problem 18P

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Spring Garden Preschool operates a not-for-profit morning preschool. Each family pays a nonrefundable registration fee of $120 per child per school year. Monthly tuition for the eight-month school year varies depending on the number of days per week that the child attends preschool. The monthly tuition is $125 for the two-day program, $150 for the three-day program, $165 for the four-day program, and $180 for the five-day program. The following enrollment has been projected for the coming year: In addition to the morning preschool, Spring Garden Preschool offers a Lunch Bunch program where kids have the option of staying an extra hour for lunch and playtime. The preschool charges an additional $2 per child for every Lunch Bunch attended. Historically, half of the children stay for Lunch Bunch an average of 15 times a month. Requirement Calculate Spring Garden Preschool’s budgeted revenue for the school year.
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