# Question: Great Start Preschool operates a not for profit morning preschool that operates

Great Start Preschool operates a not-for-profit morning preschool that operates nine months of the year. Great Start has 152 kids enrolled in its various programs. Great Start’s primary expense is payroll. Teachers are hired so that there are no more than eight kids per teacher.
Teachers are paid a flat salary each of the nine months as follows:
Teachers of two-day program: ................................................. \$ 432 per month
Teachers of three-day program:................................................ \$ 648 per month
Teachers of four-day program:................................................. \$ 864 per month
Teachers of five-day program:.................................................. \$1,080 per month
Preschool director’s salary: ....................................................... \$1,500 per month
Great Start has seven two-day program teachers, four three-day program teachers, six four- day program teachers, and two five-day program teachers. Great Start also has one director.
In addition to the salary expense, Great Start must pay payroll taxes in the amount of 7.65% of salary expense. Great Start leases its facilities from a local church, paying \$4,012 every month it operates. Fixed operating expenses (telephone, internet access, bookkeeping services, and so forth) amount to \$850 per month over the nine-month school year. Variable monthly expenses (over the nine-month school year) for art supplies and other miscellaneous supplies are \$12 per child. Revenue for the entire nine-month school year from tuition and registration fees is projected to be \$219,840.
Requirements
1. Prepare Great Start Preschool’s monthly operating budget. Round all amounts to the nearest dollar.
2. Using your answer from Requirement 1, create Great Start Preschool’s budgeted income statement for the entire nine-month school year. Assume that the operating revenue is \$219,840. You may group all operating expenses together.
3. Great Start is a not-for-profit preschool. What might Great Start do with its projected income for the year?

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