Homework Help is Here – Start Your Trial Now!
Business
Finance
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 $5.40 per day. After analyzing its costs, Hardyke calculates that, with its operating deficit, the full cost of each student for a day is $7.90. 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 3,400 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 $ 6.90 per day c. Price $ 7.90 per day d. Difference $ 14,960 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 $5.40 per day. After analyzing its costs, Hardyke calculates that, with its operating deficit, the full cost of each student for a day is $7.90. 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 3,400 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 $ 6.90 per day c. Price $ 7.90 per day d. Difference $ 14,960 per month

CONCEPTS IN FED.TAX.,2020-W/ACCESS
CONCEPTS IN FED.TAX.,2020-W/ACCESS
20th Edition
ISBN:9780357110362
Author:Murphy
Publisher:Murphy
Chapter2: Income Tax Concepts
Section: Chapter Questions
Problem 19P
See similar textbooks
icon
Related questions
Question
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 $5.40 per day. After analyzing its costs, Hardyke calculates that, with its operating deficit, the full cost of each student for a day is $7.90. 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 3,400 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 $ 6.90 per day c. Price $ 7.90 per day d. Difference $ 14,960 per month
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 $5.40 per day. After analyzing its costs, Hardyke calculates that, with its operating deficit, the full cost of each student for a day is $7.90. 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 3,400 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 $ 6.90 per day c. Price $ 7.90 per day d. Difference $ 14,960 per month
Expert Solution
steps

Step by step

Solved in 2 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
CONCEPTS IN FED.TAX., 2020-W/ACCESS
CONCEPTS IN FED.TAX., 2020-W/ACCESS
Accounting
ISBN:
9780357110362
Author:
Murphy
Publisher:
CENGAGE L
Principles of Accounting Volume 1
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College
SEE MORE TEXTBOOKS