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Appaloosa County Day Care Center, Inc.

1. Identify the providers or programs to be included in the fee and profitability analysis. Infant childcare
Toddler childcare
Pre-K childcare
Rent-school district
Rent-head start

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2. Examine the prices listed in Table 2.
a. Identify the direct prices associated with each service or program. Labor value is related to each service and program. Food price is related to the kitchen space however indirect to the tip companies. b. Which costs could be organization-sustaining costs? Provide an argument for or in opposition to assigning these prices to companies or programs.

Organization-sustaining prices embrace depreciation, constructing insurance and curiosity expense on mortgage debt. Both ACDC and tenant use the facility and should take part in the cost associated with buying the area.

3. Identify the broad exercise categories and create price pools by assigning the prices from Table 2 to the pools. Occupancy Cost- Indirect
Employee Support cost
General and administrative cost
Program help cost
Occupancy cost- Building Usage
Wage Expenses- Direct

4. Identify the price drivers that have a causal relationship to the activity value swimming pools created in Question 3.

Cost Pool
Cost Driver
Occupancy costs-indirect
Square footage
Employee assist costs
Number of ACDC program employees
General and administrative costs
Total variety of children enrolled
Program assist cost
Total day by day population at ACDC
Occupancy costs- Building usage
Total every day population in building
Wages expenses- Direct
Number of staff assigned to rooms

5. Calculate the activity or cost-driver rates for every price pool. Note: You ought to develop charges that will allocate prices to ACDC programs and/or tenants only. You shouldn’t allocate any costs again to basic administration.

6. Using the services or packages recognized in Question 1, decide service or program revenues, assign the costs to the service or programs, and calculate service or program profitability. A spreadsheet may be useful with this task.

7. Based upon your calculations in Question 6, which services or programs are operating successfully? What seems to be the determining factor in whether the service or program is profitable? Toddler Care and Pre-K care are the two programs which are operating efficiently.

8. Discuss at least three alternate options for improving the general profitability of the daycare facility. Three options for bettering the overall profitability of the daycare facility are infant care, college district tenant and head begin tenant.

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