1. Jane's Day Care Analysis
Author Shangz Brown
Created 5/29/2009
Modified 5/31/2009
Contents Income Statement Two data tables.
One Variable Data Table showing the effect on net income as the number of
enrolled students changed.
Two Variable Table showing the effect on net income as the
number of enrolled students and daily tuition fee changed.
Scenario Summary Jane is curious to see the effect of new assumptions.
Analysis Recommendation I recommend that Jane take on fewer children. It would reduce her expenses and
increase her net income.
Shangz Brown 1 Curtis

2. Day Care Wonders
Income Statement
Assumptions
Number of Children/Day 7
Average Days per Year 250
Teacher Cost / Year 26,000
Food/Child/Day $1.25
Supplies Child/Year $75.00
Annual Revenue
Tuition per Day $50
Total Rev $87,500
Annual Variable Expenses
Food Expenses $2,188
Supplies per Year 525
Teacher Cost $52,000
Total Variable Expenses $54,713
Annual Fixed Expenses
Insurance 5,000
Maintenance 6,500
Administrative & Advertising 1,000
Est. Taxes 12,000
Total Fixed Expenses $24,500
Summary
Total Revenue 87,500
Total Expenses 79,213
Net Income $8,288
Shangz Brown 2 Curtis

3. Teacher:Student Ratio Required
Students Teachers
1 1
7 2
13 3
19 4
Effect of Varying Number of Children on Expenses and Net Income
76 7 8 9 10 11 12 13 14 15
Expenses $79,213 $52,825 $79,213 $79,600 $79,988 $80,375 $80,763 $81,150 $107,538 $107,925 $108,313
Net Inc $8,288 $22,175 $8,288 $20,400 $32,513 $44,625 $56,738 $68,850 $54,963 $67,075 $79,188
Goal $75,000
Effect on Net Income of Varying Fees and Number of Children
FEES 6 7 8 9 10 11 12 13 14 15
$35 ($325.00) ($17,962.50) ($9,600.00) ($1,237.50) $7,125.00 $15,487.50 $23,850.00 $6,212.50 $14,575.00 $22,937.50
$40 $7,175.00 ($9,212.50) $400.00 $10,012.50 $19,625.00 $29,237.50 $38,850.00 $22,462.50 $32,075.00 $41,687.50
$45 $14,675.00 ($462.50) $10,400.00 $21,262.50 $32,125.00 $42,987.50 $53,850.00 $38,712.50 $49,575.00 $60,437.50
$50 $22,175.00 $8,287.50 $20,400.00 $32,512.50 $44,625.00 $56,737.50 $68,850.00 $54,962.50 $67,075.00 $79,187.50
$55 $29,675.00 $17,037.50 $30,400.00 $43,762.50 $57,125.00 $70,487.50 $83,850.00 $71,212.50 $84,575.00 $97,937.50
$60 $37,175.00 $25,787.50 $40,400.00 $55,012.50 $69,625.00 $84,237.50 $98,850.00 $87,462.50 $102,075.00 $116,687.50
$65 $44,675.00 $34,537.50 $50,400.00 $66,262.50 $82,125.00 $97,987.50 $113,850.00 $103,712.50 $119,575.00 $135,437.50
$70 $52,175.00 $43,287.50 $60,400.00 $77,512.50 $94,625.00 $111,737.50 $128,850.00 $119,962.50 $137,075.00 $154,187.50
$75 $59,675.00 $52,037.50 $70,400.00 $88,762.50 $107,125.00 $125,487.50 $143,850.00 $136,212.50 $154,575.00 $172,937.50
Shangz Brown 3 Curtis

4. Economy
15
15000
25
35
Page 4

5. MidRange
8
26000
60
50
Page 5

6. High
6
38000
100
100
Page 6

7. Scenario Summary
Current Values: Economy MidRange High
Changing Cells:
Teacher_Cost___Year 26,000 15,000 26,000 38,000
Supplies_Child_Year $75.00 $25.00 $60.00 $100.00
Number_of_Children_Day 7 15 8 6
Tuition_per_Day $50 $35 $50 $100
Result Cells:
Total_Revenue 87,500 131,250 100,000 150,000
Total_Expenses 79,213 74,563 79,480 64,975
Net_Income $8,288 $56,688 $20,520 $85,025
Notes: Current Values column represents Jane's original assumptions @
time Scenario Summary Report was created. Changing cells for each
scenario are highlighted in yellow.
Shangz Brown 7 Curtis