103: Apply basic cost analysis and accounting formulas. Q1 Answer the following questions (9 Marks) An Engineering Dept Psychology specialist called Simon opened a corner, small day care facility, just over two years ago, after a rocky start, Simon's corner has been thriving, Simon is now preparing a budget for Nov 2019. Monthly fixed expenses for Simon's corner are: Rent $ 800 Salaries $ 1400 Other fixed costs $ 100 Total fixed costs $ 2300 The salary paid for Simon is excess revenues after accounting for all costs each month. The costs deriver for variable costs is 'child-days' One child-day is one day in day care for one child and the variable cost is $10 per child-day. The facility is open during week days Mon-Fri and there are 22-week day in Nov 2019. An average day has 8 children attending Simon Corner. The law prohibits Simon from having more than 14 children; limit has never been reached by him. Simon charges $ 30 per day child, regardless of how long the child is at the facility. 1.1 Suppose attendance for Nov 2019 is equal to the average. Resulting in 22*8=176 child days, what amount will Simon have left after paying his expenses? (3 Marks) 1.2 Suppose both costs and attendance are difficult to predict, compute the amount Simon will have left after paying all his costs for each of the following situations. Consider each case independently: 1.2.1 Average attendance is (9) children instead of (8), generating 198 child days. (2 Marks) 1.2.2 Simon spends $ 300 in advertising (F.C) in Nov, increase average daily attendance to 9.5 children. (2 Marks) 1.2.3 Simon begins charging $33 per day on Nov 1, and average daily attendance slips to 7 children. (2 Marks)