Based on the information below, once the minimum threshold of participants is reached, the initial investment to
Question:
Based on the information below, once the minimum threshold of participants is reached, the initial investment to establish the center is $317,880. The organization anticipates that it will generate $46,920 of net revenues in the first year, $68,166 in the second year, $93,404 in the third year, $123,287 in the fourth year, and $158,573 in the fifth year.
- Perform the break-even analysis to determine how many seniors would need to have a full monthly membership for MHCBS to cover its monthly expenses.
- Calculate the payback period to determine how long it will take MHCBS to recover its initial investment of establishing the senior multipurpose center
2. Can someone please break down how to get the solution for the table below? The data to get the answer is in the table below.
Break-Even Analysis | |
Total Revenues - Total VC - FC = Profit | |
Total Revenues - Total VC | |
Total FC/Total Revenues - Total VC |
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This is data that is needed to get the solution for the above table and questions.
Maryland Home and Community-Based Services (MHCBS) | ||
Assumptions | ||
Expected Monthly Revenue (Membership Fee): $125 per person | ||
Fixed Costs | ||
Utilities | $ 590.00 | |
Health/Wellness Staff | $ 2,500.00 | |
Arts/Crafts Staff | $ 2,000.00 | |
Supplies | $ 800.00 | |
Fitness Equipment | $ 200.00 | |
Total Fixed Costs | $ 6,090.00 | |
Variable Costs | ||
Monthly Lunch Costs | $ 25.00 | |
Monthly Breakfast Costs | $ 15.00 | |
Total Variable Costs | $ 40.00 | |
Break-Even Analysis | ||
Total Revenues - Total VC - FC = Profit | ||
Total Revenues - Total VC | ||
Total FC/Total Revenues - Total VC | ||
Payback period | ||
Initial investment | $317,880 | |
1st Year | $46,920 | |
2nd Year | $68,166 | |
3rd Year | $93,404 | |
4th Year | $123,287 | |
5th Year | $158,573 |
College Accounting A Contemporary Approach
ISBN: 978-0077639730
4th edition
Authors: David Haddock, John Price, Michael Farina