Hardyke Group operates a local after-school recreation and activities program. The Education Department is a state governmental agency. Hardyke has an agreement with the Department to provide services to students in need for a nominal $1 per day, to be paid by the student. The government will reimburse Hardyke for the "cost" of providing daily services used by a student. The regular price to participate in the program is $5.70 per day. After analyzing its costs, Hardyke calculates that, with its operating deficit, the full cost of each student for a day is $8.20. All programs that Hardyke offers are unaffected by the number of students paying the nominal fee. Required: b. Which price would Hardyke Group prefer? Note: Enter your answer to 2 decimal places. c. Which price would the Education Department prefer? Note: Enter your answer to 2 decimal places. Leave no cells blank - be certain to enter "0" wherever required. d. If Hardyke provides an average of 3,700 student-days for in-need children in a given month, what is the monthly value of the difference between the prices in full capacity? b. Price c. Price d. Difference per day per day per month
Hardyke Group operates a local after-school recreation and activities program. The Education Department is a state governmental agency. Hardyke has an agreement with the Department to provide services to students in need for a nominal $1 per day, to be paid by the student. The government will reimburse Hardyke for the "cost" of providing daily services used by a student. The regular price to participate in the program is $5.70 per day. After analyzing its costs, Hardyke calculates that, with its operating deficit, the full cost of each student for a day is $8.20. All programs that Hardyke offers are unaffected by the number of students paying the nominal fee. Required: b. Which price would Hardyke Group prefer? Note: Enter your answer to 2 decimal places. c. Which price would the Education Department prefer? Note: Enter your answer to 2 decimal places. Leave no cells blank - be certain to enter "0" wherever required. d. If Hardyke provides an average of 3,700 student-days for in-need children in a given month, what is the monthly value of the difference between the prices in full capacity? b. Price c. Price d. Difference per day per day per month
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Hardyke Group operates a local after-school recreation and activities program. The Education Department is a state governmental
agency. Hardyke has an agreement with the Department to provide services to students in need for a nominal $1 per day, to be paid
by the student. The government will reimburse Hardyke for the "cost" of providing daily services used by a student.
The regular price to participate in the program is $5.70 per day. After analyzing its costs, Hardyke calculates that, with its operating
deficit, the full cost of each student for a day is $8.20. All programs that Hardyke offers are unaffected by the number of students
paying the nominal fee.
Required:
b. Which price would Hardyke Group prefer?
Note: Enter your answer to 2 decimal places.
c. Which price would the Education Department prefer?
Note: Enter your answer to 2 decimal places. Leave no cells blank - be certain to enter "O" wherever required.
d. If Hardyke provides an average of 3,700 student-days for in-need children in a given month, what is the monthly value of the
difference between the prices in full capacity?
b. Price
c. Price
d. Difference
per day
per day
per month
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