Question

Exercise 7.31 Suppose that Elite Daycare provides two different services: full-time childcare for preschoolers, and after-school care for older children. The director would like to estimate an annual cost per child in each of the daycare programs, ignoring any facility-sustaining costs. She is considering expanding the services and wants to know whether full-time or after-school care is more profitable. The following activities and annual costs apply to the daycare centre. Salaries and wages are $100,000. Full-time children arrive between 8:00 and 9:00 a.m. Older children arrive about 3:00 p.m. All the children are gone by 6:00 p.m. Employees estimate that they spend about 20% of their time on meal-related activities, 20% supervising naps or recreation, 10% in greeting children or sending them home, and the rest of the time presenting educational experiences to the children. Meals and snacks cost about $20,000. Preschoolers receive 2 snacks and 1 meal per day, and the older children receive 1 snack per day. On average, snacks and meals do not differ in cost. Supplies cost $10,000 for the full-time childcare program and $8,000 for the after-school program. Currently, 30 children participate in full-time care and 10 children in after-school care. Because Elite Daycare maintains a waiting list for openings in its programs, the number of children in each program remains steady. (b) Assuming 250 days of daycare for a year, estimate the annual cost per child in each program. (Round intermediate calculation to 2 decimal places, e.g. 2.78 and final answers to o decimal places, e.g. 5,275.) Full-Time After-School Total Annual Cost Per Child

Answer 1

Answer Page: No O Annual comenta per child to cache conseguem Full time . No. of students = 30 No. of meals Lastudent' = ambacho & tmeal /day - 3 as eighted average = 30x3 90 Salaries and woges = $100,000 Meala melated activities @ 20% +100,000 x 20/]x100 . .. = 20000 x 90 FrAfter school . : 52000100 No. of children ! (30+0=40) 20,000 X . © No. of meals = $18000 -110x1) +90=169 Supervising naps @ 30% = -100,000 X 207.) x 30 Total chilly : = 20 000 x 3. = $15000 . Greeting children @ loy; = (100,000 X104.) x :5$ 70,000 X $ 7500

40 Page No ③ Othemes = (100,000 - 20000 - 20000 -10009) = 50000 x 40 = $ 37500 Meals and snacks = $20000 x 800 = $18000 Supplies - $10,000 Total cost = 18000 + 15000 7 4500 + 37500+18000 + 10,000 = $3633 30 : 35106000 Annual cook per children = 106000 After school . Noi of students = 10 No. of meals/sfulent 1 weighted average = {ON = 10 Salaries & wages = $100,000

Pagerare ☺ - Meals vrelated activities @ 204 = (204 X 100,0003 x 10 $2000 : Supervising naps @ 20% = (aoy. X (60,000) * = $ 5000 Greeting children @ 10%. = (100 x 200,000 )* 100 = $2500 Others = (100,000 - 20000 - 20000 - 10000) x 40 = $12500 Meals and snacks = $20,000 to = $2000 Supplies - $ 8000 Total cost s 2000 + 5000 + 2500 +10500 + 2000+8000 = $32000 Annual conf per children - 38000 - $3200 100 10 Total annud.coof Ichild full time 'I After school $ 3533 $3200