Question: Creative Learning Centers ( CLC ) , a for - profit firm, operates over 1 0 0 preschools primarily located in the northeast for children

Creative Learning Centers (CLC), a for-profit firm, operates over 100 preschools primarily located in the northeast for children ages 46. CLCs innovative curriculum utilizes the latest technology and offers young minds creative expression, language and social skills, physical movement, music, and number skillsall provided by professional trained teachers. CLC leases buildings for their schools and invests substantial resources in leasehold improvements for classrooms, technology, and playground equipment. CLCs cost of capital is 12 percent. Typical tuition is about $6,300 per year for a page 194five-day-a-week, four-hour-per-day program. Maria Schnelling manages 15 CLC schools in the state of Virginia. She has decision-making responsibility for staffing and operating her schools, as well as the responsibility for recommending adding new schools and closing existing schools. The following table provides current operating data on all of her 15 preschools, and breaks out her top- and bottom-performing schools

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