Infants and After-

Pre-School Aggregate
Toddlers School
Students at full capacity 150
Actual number of students 50 40 25 115
Fee per student 4,520 5,320 5,970 5,113
Total revenue 226,000 212,800 149,250 588,050
Variable cost per student 480 1,040 896 765
Total variable cost 24,000 41,600 22,400 88,000
Contribution margin to program fixed co 202,000 171,200 126,850 500,050
Program Fixed costs 130,000 118,000 80,000 328,000
Contribution to allocated fixed costs 72,000 53,200 46,850 172,050
Allocated fixed costs 42,675 51,210 76,815 170,700
Surplus (deficit) 29,325 1,990 (29,965) 1,350

Total Fixed Costs 172,675 169,210 156,815 498,700

Unit contribution margin 4,040 4,280 5,074 4,348
Break-even on total costs 42.74 39.54 30.91 114.69

Infants and After-

Pre-School Aggregate
Toddlers School
Students at full capacity 150
Actual number of students (a) 50 50 40 140
Fee per student (b) 4,972 5,852 6,567 5,742
Total revenue 248,600 292,600 262,680 803,880
Variable cost per student 498 1,079 929.60 828.81
Total variable cost 24,900 53,950 37,184 116,034
 Contribution margin to program fixed costs 223,700 238,650 225,496 687,846
Program Fixed costs 130,000 140,000 105,000 375,000
Contribution to allocated fixed costs 93,700 98,650 120,496 312,846
Allocated fixed costs 42,675 51,210 76,815 170,700
Surplus (deficit) 51,025 47,440 43,681 142,146

Total Fixed Costs 172,675 191,210 181,815 545,700

Unit contribution margin 4,474 4,773 5,637 4,913
Break-even on total costs 38.60 40.06 32.25 111.07

Computations:
a Increase in target students
Original 50 40 25 115
Increases - 10 15 25
New number of students 50 50 40 140

b Increase in tuition fees

Original tuition fees 4,520 5,320 5,970
Increase of 10% 4,972 5,852 6,567

c Variable Costs
Original variable costs 480 1,040 896
Supplies (75%) 360 780 672
Food (25%) 120 260 224
New variable costs
Supplies (5% increase) 378 819 706
Food (no increase) 120 260 224
Total 498 1,079 930
d Original fixed costs
Program 130,000 118,000 80,000 328,000
Allocated fixed costs 42,675 51,210 76,815 170,700
Total 172,675 169,210 156,815 498,700

New fixed costs

Program costs - Addition - 22,000 25,000 47,000
Total program costs 130,000 140,000 105,000 375,000
Allocated fixed costs 42,675 51,210 76,815 170,700
Total new fixed costs 172,675 191,210 181,815 545,700