Hardyke Group operates a local after-school recreation and activities program. The Education Department is a state governmentalagency. Hardyke has an agreement with the Department to provide services to students in need for a nominal $1 per day, to be paidby 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 $5.40 per day. After analyzing its costs, Hardyke calculates that, with its operatingdeficit, the full cost of each student for a day is $7.90. All programs that Hardyke offers are unaffected by the number of studentspaying 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 "O" wherever required.d. If Hardyke provides an average of 3,400 student-days for in-need children in a given month, what is the monthly value of thedifference between the prices in full capacity?b. Price$6.90per dayc. Price$7.90per dayd. Difference$14,960per month

Requirement b(b) Calculation of the price would Hardyke Group prefer:Price Hardyke prefers = Cost to…

Answered: Hardyke Group operates a local…

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter15: Choice Of Business Entity—other Considerations

Section: Chapter Questions

Problem 71P

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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 $5.90 per day. After analyzing its costs, Hardyke calculates that, with its operating deficit, the full cost of each student for a day is $8.40. 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 3,900 student-days for in-need…
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 $6.70 per day. After analyzing its costs, Hardyke calculates that, with its operating deficit, the full cost of each student for a day is $9.20. 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 "O" wherever required. d. If Hardyke provides an average of 4,700 student-days for in-need…
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Seattle Transit Ltd. operates a local mass transit system. The transit authority is a state governmental agency. It has an agreement with the state government to provide rides to senior citizens for 63 cents per trip. The government will reimburse Seattle Transit for the “cost” of each trip taken by a senior citizen. The regular fare is $3.30 per trip. After analyzing its costs, Seattle Transit figured that, with its operating deficit, the full cost of each ride on the transit system is $5.30. Routes, capacity, and operating costs are unaffected by the number of senior citizens on any route. Required: b. Which price would Seattle Transit prefer? (Round your answer to 2 decimal places.) c. Which price would the state government prefer? (Round your answer to 2 decimal places.) d. If Seattle Transit provides an average of 163,000 trips for senior citizens in a given month, what is the monthly value of the difference between the prices in full capacity? b. Price…
Seattle Transit Ltd. operates a local mass transit system. The transit authority is a state governmental agency. It has an agreement with the state government to provide rides to senior citizens for 67 cents per trip. The government will reimburse Seattle Transit for the “cost” of each trip taken by a senior citizen. The regular fare is $3.70 per trip. After analyzing its costs, Seattle Transit figured that, with its operating deficit, the full cost of each ride on the transit system is $5.70. Routes, capacity, and operating costs are unaffected by the number of senior citizens on any route. Required: b. Which price would Seattle Transit prefer? (Round your answer to 2 decimal places.) c. Which price would the state government prefer? (Round your answer to 2 decimal places.) d. If Seattle Transit provides an average of 167,000 trips for senior citizens in a given month, what is the monthly value of the difference between the prices in full capacity?
You own a construction company and have recently received a contract with the local school district to refurbish one of its elementary schools. You are given an up-front payment from the school district in the amount of $5 million. The contract terms extend from years 2018 to 2020. When would you recognize revenue for this payment? What method of accounting would you use for this construction project and why? What would be the benefits and challenges with your method selection? Give an example of your distribution selection and associated costs of the project (you may estimate based on other industry competitors). What might be some benefits and challenges associated with the other method of construction revenue recognition?
You have developed a self-study certification system for those who need credit hours for recertification by your state’s social welfare office. The system operates at virtually no cost, i.e., there is no marginal cost. A marketing research team has assembled the following sales information. You are researching the options for pricing the courses. Your goal is to achieve maximum revenue to establish funding to maintain and update the system to reflect annual policy changes in licensing requirements. Complete the calculations for Total Revenue by determining how many customers will purchase at each of the segment prices. Online Self Certifications for Social Work License Certification in Online Counseling Certification as a Group Home Counselor Bundle Customers TR Counseling TR Group Home TR Bundle Segment 1 1000 $190 a $70 e $260 4a Segment 2 1000 $150 b $90 f $240 4b…
Genesee Music Society is a not-for-profit organization that brings guest artists to the community’s greater metropolitan area. The music society just bought a small concert hall in the center of town to house its performances. The lease payments on the concert hall are expected to be $4,000 per month. The organization pays its guest performers $1,800 per concert and anticipates corresponding ticket sales to be $4,500 per concert. The music society also incurs costs of approximately $1,000 per concert for marketing and advertising. The organization pays its artistic director $33,000 per year and expects to receive $30,000 in donations in addition to its ticket sales. Q. If the Genesee Music Society just breaks even, how many concerts does it hold?
The Shannon Community Kitchen provides hot meals to homeless and low-income individuals and families; it is the organization’s only program. It is the policy of the community kitchen to use restricted resources for which the purpose has been met before resources without donor restrictions. The Kitchen had the following revenue and expense transactions during the 2020 fiscal year. Cash donations without donor restrictions of $25,000 were received. A local philanthropist also contributed $3,000, which was to be used for the purchase of Thanksgiving dinner foodstuffs. A local grocery store provided fresh produce with a fair value of $100. The produce was immediately used. Volunteers from the local university contributed 100 hours to preparation and serving of meals. The estimated fair value of their labor was $750. The Kitchen received a $5,000 federal grant for the purchase of institutional kitchen appliances. At Thanksgiving time, the Kitchen spent $4,100 on foodstuffs for preparation…
For each of the following organizations, determine its UBTI and any related UBIT. Connect, Inc., an exempt organization, provides food for the homeless. It oper- ates a thrift store that sells used clothing to the general public. The thrift shop is staffed solely by four salaried employees. All of the clothes it sells are received as contributions. The $100,000 profit generated for the year by the thrift shop is used in Connect’s mission of providing food to the homeless. Small, Inc., an exempt organization, recorded gross unrelated business income of $900 and unrelated business expenses of $400.
Spring Garden Preschool operates a not-for-profit morning preschool. Each family pays a nonrefundable registration fee of $120 per child per school year. Monthly tuition for the eight-month school year varies depending on the number of days per week that the child attends preschool. The monthly tuition is $125 for the two-day program, $150 for the three-day program, $165 for the four-day program, and $180 for the five-day program. The following enrollment has been projected for the coming year: In addition to the morning preschool, Spring Garden Preschool offers a Lunch Bunch program where kids have the option of staying an extra hour for lunch and playtime. The preschool charges an additional $2 per child for every Lunch Bunch attended. Historically, half of the children stay for Lunch Bunch an average of 15 times a month. Requirement Calculate Spring Garden Preschool’s budgeted revenue for the school year.
Pretty Place Preschool operates a not-for-profit morning preschool. Each family pays a nonrefundable registration fee of $140 per child per school year. Monthly tuition for the eight-month school year varies depending on the number of days per week that the child attends preschool. The monthly tuition is $125 for the two-day program, $140 for the three-day program, $160 for the four-day program, and $185 for the five-day program. The following enrollment has been projected for the coming year: In addition to the morning preschool, Pretty Place Preschool offers a Lunch Bunch program where kids have the option of staying an extra hour for lunch and playtime. The preschool charges an additional $2 per child for every Lunch Bunch attended. Historically, half of the children stay for Lunch Bunch an average of 15 times a month. Requirement Calculate Pretty Place Preschool's budgeted revenue for the school year. (Click the icon to view the enrollment data.) ..... Pretty Place Preschool…

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