The Pleasant Valley School District, which leases its buses from a private transportation company, has determined that
Question:
1. Calculate the average cost per child of providing bus transportation.
2. The district expects that next year it will have to provide transportation for an additional 300 children- a total of 3,000.
a. Based on average cost, how much additional cost should the district budget?
b. How much additional cost do you think the district should budget?
3. Suppose that the district expects that it will have to provide transportation for another 60 children in addition to the 300-a total of 360. How much more should it budget for the additional 60 children?
4. Suppose the district expected that it will have to provide transportation for an additional 100 children in addition to the 300-a total of 400 students. How much more should it budget for the 100 children?
How might management manage the process until it knew with certainty that 100 children will actually need transportation?
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Related Book For
Government and Not for Profit Accounting Concepts and Practices
ISBN: 978-1118983270
7th edition
Authors: Michael Granof, Saleha Khumawala, Thad Calabrese, Daniel Smith
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