# Spotted Turtle provides daycare for children Mondays through Fridays. Its monthly variable costs per

Spotted Turtle provides daycare for children Mondays through Fridays. Its monthly variable costs per child are as follows: Lunch and snacks……………………………………………\$130 Educational supplies……………………………………………75 Other supplies (paper products, toiletries, etc.) ………………..35 Total………………………………………………………….\$240 Monthly fixed costs consist of the following: Rent………………………………………………………..\$2,100 Utilities………………………………………………………..400 Insurance………………………………………………………250 Salaries………………………………………………………1,400 Miscellaneous…………………………………………………650 Total………………………………………………………..\$4,800 Spotted Turtle charges each parent \$640 per child per month. Required 1. Calculate the breakeven point. 2. Spotted Turtle s target operating income is \$10,800 per month. Compute the number of children who must be enrolled to achieve the target operating income. 3. Spotted Turtle lost its lease and had to move to another building. Monthly rent for the new building is \$3,500. In addition, at the suggestion of parents, Spotted Turtle plans to take children on field trips. Monthly costs of the field trips are \$2,500. By how much should Spotted