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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Fairchild Centre is an NFPO funded by government grants and private donations. It was established on January 1, Year 5, to provide counselling services and a drop-in centre for single parents. On January 1, Year 5, the centre leased an old warehouse in the central part of Smallville for $1,300 per month. It carried out minor renovations in the warehouse to create a large open area for use as a play area for children and three offices for use by the executive director and counsellors. The lease runs from January 1, Year 5, to June 30, Year 7. By that time, the centre hopes to move into new quarters that are more suitable for the activities carried out. The following schedule summarizes the cash flows for the year ended December 31, Year 5: Cash inflows: Government grant for operating costs (Note 1) Donations from individuals with no restrictions Donations from individuals for rent of warehouse for 2½ years Donations from individuals for purchase of land (Note 3) $ 39,000 47,000 39,000…
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