Acc202 Module 5
ACC202
(1) Is this a static or flexible budget? The sample budget for a charter school in this case assignment is a flexible budget. This is because this budget provides results for more than one activity or in this case level.
(2) What is total revenue (excluding grants) per student? The total revenue for each student minus grants is $6,063 for all three levels (66, 100 and 120).
(3) What are total expenses per student? The total expenses for each student in the level of 120 students enrollment is $4,518, for each student in the level of 100 students enrollment is $5,283 and for each student in the 66 students enrollment is $7,646.
(4) Do all expenses seem necessary? Reviewing the list of expenses to me they mostly seem like they are required to run a charter school. The one that stood out to me that did not seem like it is completely a necessary expense is the field trip expense. That seems for optional.
(5) Is this school viable? How many students does the school need to break even (show your calculations with analysis and state your assumptions for break-even)?
(Note: For break-even analysis – Ignore revenue received as “Grants” and “Startup Costs” (Schedule A).
While calculating for the break-even analysis I really had a hard time getting to the actual zero amounts. What I came up with is as follows.
Students 120 100 66 85.5 (break-even)
Revenue per Student 6063.06 6063.06 6063.06
(1) Is this a static or flexible budget? The sample budget for a charter school in this case assignment is a flexible budget. This is because this budget provides results for more than one activity or in this case level.
(2) What is total revenue (excluding grants) per student? The total revenue for each student minus grants is $6,063 for all three levels (66, 100 and 120).
(3) What are total expenses per student? The total expenses for each student in the level of 120 students enrollment is $4,518, for each student in the level of 100 students enrollment is $5,283 and for each student in the 66 students enrollment is $7,646.
(4) Do all expenses seem necessary? Reviewing the list of expenses to me they mostly seem like they are required to run a charter school. The one that stood out to me that did not seem like it is completely a necessary expense is the field trip expense. That seems for optional.
(5) Is this school viable? How many students does the school need to break even (show your calculations with analysis and state your assumptions for break-even)?
(Note: For break-even analysis – Ignore revenue received as “Grants” and “Startup Costs” (Schedule A).
While calculating for the break-even analysis I really had a hard time getting to the actual zero amounts. What I came up with is as follows.
Students 120 100 66 85.5 (break-even)
Revenue per Student 6063.06 6063.06 6063.06