Teddy Bear provides daycare for children Mondays through Fridays. Teddy Bear charges each parent $580 per child per month. 1. Calculate the breakeven point. 2. Teddy Bear's target Other supplies $10,500 per month Compute the number of children who must be enrolled to achieve the targeting operating income. 3. Teddy Bear lost its lease and had to move to another building. Monthly rent for the new building is $3,150 In addition, at the suggestion of parents, Teddy Bear plans to take children on field trips. Monthly cost of the field trips are $1,300 . By how much should teddy Bear increase fees per child to meet the target operating income of $10,500 per month, assuming the same number of children as in requirement 2? Its monthly variable costs per child are as follows: Lunch and snacks: $125 Educational supplies $85 Other supplies (paper products, toiletries, etc) 20 Total:$230 Monthly fixed costs consist of the following: Rent $2,150 Utilities $250 Insurance $350 Salaries $2,100 Miscellaneous $750 .

1. Teddy Bear provides daycare for children Mondays through Fridays. Teddy Bear charges each
parent $580 per child per month.
1. Calculate the breakeven point.
2. Teddy Bear's target Other supplies $10,500 per month Compute the number of children who
must be enrolled to achieve the targeting operating income.
3. Teddy Bear lost its lease and had to move to another building. Monthly rent for the new
building is $3,150 In addition, at the suggestion of parents, Teddy Bear plans to take children on
field trips. Monthly cost of the field trips are $1,300 . By how much should teddy Bear
increase fees per child to meet the target operating income of $10,500 per month, assuming
the same number of children as in requirement 2?
Its monthly variable costs per child are as follows:
Lunch and snacks: $125
Educational supplies $85
Other supplies (paper products, toiletries, etc) 20
Total:$230
Monthly fixed costs consist of the following:
Rent $2,150
Utilities $250
Insurance $350
Salaries $2,100
Miscellaneous $750