Case: 9-3(Montvale Corporation and Riverview)
Question1: What should Johnson do?
Answer: Jerry Johnson, financial vice president of Montvale Corporation, made a three-day visit to Riverview, its newest retirement community. He also said that he did not know of a logical way of driving the total amount of revenue needed in a year between the entrance fee and the monthly fee. Practice varied widely. so he should understand the logical way of driving the total amount of revenue needed in a year between the entrance fee and the monthly fee.
Question2: What are the implications of your conclusion for the concept of "fairness" in arriving at prices and fees in nonprofit organization?
Answer: The concept of "fairness" is that the fees should be fair, both to the residents and to the organization. With the conventional depreciation, residents should pay their share of actual cost of fixed assets they used each year. They would not pay for depreciation as such, but they would help pay for the cost of future renewals that would not benefit them.
Question3: Suggest a way of deciding how the proportion of total revenue from residents should be divided between entrance fees and monthly fees/
Answer: Some retirement communities charged only a small entrance fee and charged correspondingly higher fees for apartment, meals and various services. Montvale's policy of a large entrance fee and a correspondingly lower monthly fee was near the other extreme. The most important Riverview assumptions were:
For inflation: 4.5 %( 1995 and 1996)
Monthly fee 5.0%
Entrance fee 4.0%
My suggestion is that entrance fee should be reduced and should be 2.5% of revenue. On the other hand monthly fee can be little bit higher and can be 6.5% of the revenue.
Question 4: Why should pay for the tennis court if it is built?
Answer: A recent survey showed that about 40 couples wanted to play tennis on the premises. If two tennis courts were built which cost of approximately $50,000, should all resident, in effect, pay for them via their monthly fees or should pay fees for using the facilities
Artinya: “Wahai Tuhanku, sesungguhnya waktu dhuha adalah waktu dhuha-Mu, keagungan adalah keagunan-Mu, keindahan adalah keindahan-Mu, kekuatan adalah kekuatan-Mu, penjagaan adalah penjagaan-Mu, Wahai Tuhanku, apabila rezekiku berada di atas langit maka turunkanlah, apabila berada di dalam bumi maka keluarkanlah, apabila sukar mudahkanlah, apabila haram sucikanlah, apabila jauh dekatkanlah dengan kebenaran dhuha-Mu, kekuasaan-Mu (Wahai Tuhanku), datangkanlah padaku apa yang Engkau datangkan kepada hamba-hambaMu yang soleh”.
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