Hardyke Group operates a local after-school recreation and activities program. The Education Department is a state governmental agency. Hardyke has an agreement with the Department to provide services to students in need for a nominal $1 per day, to be paid by the student. The government will reimburse Hardyke for the "cost" of providing daily services used by a student. The regular price to participate in the program is $6.20 per day. After analyzing its costs, Hardyke calculates that, with its operating deficit, the full cost of each student for a day is $8.70. All programs that Hardyke offers are unaffected by the number of students paying the nominal fee. Required: b. Which price would Hardyke Group prefer? Note: Enter your answer to 2 decimal places. c. Which price would the Education Department prefer? Note: Enter your answer to 2 decimal places. Leave no cells blank - be certain to enter "0" wherever required. d. If Hardyke provides an average of 4,200 student-days for in-need children in a given month, what is the monthly value of the difference between the prices in full capacity?
Hardyke Group operates a local after-school recreation and activities program. The Education Department is a state governmental agency. Hardyke has an agreement with the Department to provide services to students in need for a nominal $1 per day, to be paid by the student. The government will reimburse Hardyke for the "cost" of providing daily services used by a student. The regular price to participate in the program is $6.20 per day. After analyzing its costs, Hardyke calculates that, with its operating deficit, the full cost of each student for a day is $8.70. All programs that Hardyke offers are unaffected by the number of students paying the nominal fee. Required: b. Which price would Hardyke Group prefer? Note: Enter your answer to 2 decimal places. c. Which price would the Education Department prefer? Note: Enter your answer to 2 decimal places. Leave no cells blank - be certain to enter "0" wherever required. d. If Hardyke provides an average of 4,200 student-days for in-need children in a given month, what is the monthly value of the difference between the prices in full capacity?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![Hardyke Group operates a local after-school recreation and activities program. The Education Department is a state governmental
agency. Hardyke has an agreement with the Department to provide services to students in need for a nominal $1 per day, to be paid
by the student. The government will reimburse Hardyke for the "cost" of providing daily services used by a student.
The regular price to participate in the program is $6.20 per day. After analyzing its costs, Hardyke calculates that, with its operating
deficit, the full cost of each student for a day is $8.70. All programs that Hardyke offers are unaffected by the number of students
paying the nominal fee.
Required:
b. Which price would Hardyke Group prefer?
Note: Enter your answer to 2 decimal places.
c. Which price would the Education Department prefer?
Note: Enter your answer to 2 decimal places. Leave no cells blank - be certain to enter "0" wherever required.
d. If Hardyke provides an average of 4,200 student-days for in-need children in a given month, what is the monthly value of the
difference between the prices in full capacity?
b. Price
c. Price
d. Difference
per day
per day
per month](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F1aacc468-98e0-4221-9d63-defa9e9d2aee%2F609209ac-9bff-49f0-8135-553b23b8f6a1%2Fwq7is1a.jpeg&w=3840&q=75)
Transcribed Image Text:Hardyke Group operates a local after-school recreation and activities program. The Education Department is a state governmental
agency. Hardyke has an agreement with the Department to provide services to students in need for a nominal $1 per day, to be paid
by the student. The government will reimburse Hardyke for the "cost" of providing daily services used by a student.
The regular price to participate in the program is $6.20 per day. After analyzing its costs, Hardyke calculates that, with its operating
deficit, the full cost of each student for a day is $8.70. All programs that Hardyke offers are unaffected by the number of students
paying the nominal fee.
Required:
b. Which price would Hardyke Group prefer?
Note: Enter your answer to 2 decimal places.
c. Which price would the Education Department prefer?
Note: Enter your answer to 2 decimal places. Leave no cells blank - be certain to enter "0" wherever required.
d. If Hardyke provides an average of 4,200 student-days for in-need children in a given month, what is the monthly value of the
difference between the prices in full capacity?
b. Price
c. Price
d. Difference
per day
per day
per month
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