Exercise I Early Horizons Day Care Center has fixed costs of $300,000 per year and variable costsof $10 per child per day. If it charges $25 a child per day, what will be its break-even pointexpressed in dollars of revenue? How much revenue would be required for Early Horizons DayCare to earn $100,000 net income per year?

The Break-even point is that level of production where the business makes no profit no loss. In…

ercise I Early Horizons Day Care Center nas fixed costs of $300 10 per child per day. If it charges $25 a child per day, what will ressed in dollars of revenue? How much revenue would be reqi e to earn $100,000 net income per year?

ercise I Early Horizons Day Care Center nas fixed costs of $300 10 per child per day. If it charges $25 a child per day, what will ressed in dollars of revenue? How much revenue would be reqi e to earn $100,000 net income per year?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Exercise I Early Horizons Day Care Center has fixed costs of $300,000 per year and variable costs
of $10 per child per day. If it charges $25 a child per day, what will be its break-even point
expressed in dollars of revenue? How much revenue would be required for Early Horizons Day
Care to earn $100,000 net income per year?

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