Kids Early Start (KES) operates from Monday to Friday. KES provides childcare and educational services for inner-city kids between the ages of three months and five years. It has fixed expenses of $ 35,000 per week and charges parents $ 15 per day for each child who attends the program. A city contract pays the center $ 25,000 per week. It costs KES $ 5 per day for supplies and snacks for each child. KES also offers an optional early-reading program for children over the age of three. Parents pay an additional $ 3 per day to enroll a child in the reading program. It costs KES an additional $ 4 per day for each child in the program. Thirty percent of the children attending KES are enrolled in the reading program.
1. How many whole children have to come to KES each week for it to break even?
2. If the percentage of children in the reading pro-gram rises from 30 to 35 percent, the break- even level:
a. Increases
b. Decreases
c. Stays the same